New Delhi: Shares of Hindustan Zinc Limited (HZL), owned by billionaire businessman Anil Agarwal, fell by about 10 percent on Friday. Shares of Hindustan Zinc, which gave bumper returns between April and May this year, closed at Rs 518 with a decline of 9.40 percent. It had made its all-time high of Rs 807.7 in May and since then it has slipped by about 35 percent.

Let us know what is the reason behind the continuous decline in the shares of Hindustan Zinc owned by Vedanta Group.

Vedanta is selling stake in Hindustan Zinc

Anil Agarwal's Vedanta Group is selling its 3.17 percent stake in Hindustan Zinc through Offer for Sale (OFS). Vedanta is selling shares of its subsidiary company Hindustan Zinc at a price of Rs 486 in OFS. This is Rs 32 less than the current market price of Hindustan Zinc. This is the reason why the price of Hindustan Zinc is falling. Vedanta will sell a total of 13.37 crore shares through OFS on August 16 and August 19.

What does Hindustan Zinc do?

Hindustan Zinc was founded in 1966. It mainly produces zinc and silver. It is the world's second largest company in terms of zinc production and the fifth largest in terms of silver. By the end of the June quarter, Vedanta had a 64.92 percent stake in Hindustan Zinc. The government had a 29.54 percent stake. At the same time, LIC's stake is 2.76 percent and mutual funds have 0.06 percent. If we talk about the general public i.e. retail investors, they have only 1.51 percent stake in Hindustan Zinc.

The company will give a dividend of 8,000 crores

Hindustan Zinc is planning to give a special dividend of Rs 8,000 crore to its shareholders for the current financial year. The board meeting will be held on August 20 to finalize this approval. According to the report, 30 percent of the special dividend i.e. about Rs 2,400 crore will go to the government in the form of non-tax revenue, which has a 29.5 percent stake in Hindustan Zinc. At the same time, Vedanta will get about Rs 51 crore.