Hindustan Copper Receives Shareholders Approval for 23.2% Dividend for FY22; Details

Hindustan Copper (HCL) has recently announced the highest-ever dividend per share at 23.20 per cent for FY22. The approval was granted at the 55th annual general meeting (AGM). The company has already determined eligible shareholders for the dividend benefit.

Addressing the company’s 55th annual general meeting, chairman and managing director Arun Kumar Shukla said the company’s profits have been driven by the direct sale of concentrate and higher LME prices for supply-demand imbalance. “During FY22 there has been very marginal production of cathode and CC wire rod due to direct sale of concentrate by the company the same give higher price,” Shukla said.

He said copper prices remained volatile on economic slowdown fears and supply-demand imbalance sparked a record-breaking rally in 2021 pushing prices to a high of $10.730 per metric tonne in March 2022. “Copper prices have since been volatile on fears of the global recession. The demand for copper will rise on the back of a tight supply situation coupled with decreasing grade of copper ore mined all over the world leading to a market environment for higher prices. Copper demand will increase owing to the progress of implementation of hybrid and electric vehicles worldwide with associated charging infrastructure, decarbonisation policy push by the US and EU and more and more emphasis on green energy to mitigate climate change,” Shukla said.

When Will the Dividend be Paid?

In its regulatory filing, Hindustan Copper said, “Shareholders of the Company at the 55th AGM held today through Video Conferencing /Other Audio-Visual Means have approved payment of dividend as recommended by the Board of Directors.”

Further, the company said, the date of payment of dividend equivalent to 23.20 per cent of the paid-up capital of the Company (i.e. Rs.1.16 per share) is October 26, 2022.

On BSE, Hindustan Copper shares closed at Rs 100.65 apiece down by 3.36 per cent. The company’s market cap is around Rs 9,733.10 crore.

In May this year, the company announced a dividend equivalent to 23.20 per cent on paid-up capital. This would be a Rs 1.16 per share dividend having a face value of Rs 5 each for the financial year FY22. The outgo for the dividend is Rs 112.17 crore.

Hindustan Copper had set September 22 as the record date to determine eligible shareholders for the dividend benefit.

Dividends are corporate actions decided by a listed company. They are distributed in the form of incentives out of a company’s profit.

How Shareholders will get Dividend

As per BSE FAQs, the company provides the facility of direct credit of the Dividend to the member’s bank account. Listing Regulations also mandate companies to credit the Dividend to the members electronically.

Members are urged to avail of this facility to ensure safe and speedy credit of their dividend into their Bank account.

Thereby, shareholders need to ensure to have updated their bank account with their Demat account.

Hindustan Copper is the nation’s only vertically integrated copper producing company as it manufactures copper right from the stage of mining to beneficiation, smelting, refining, and casting of refined copper metal into downstream saleable products.

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