Investors are excited because Hindustan Zinc Ltd., a major subsidiary of Vedanta Ltd., saw its share price rise by nearly 4% on Monday, June 9, 2025, anticipating a key meeting of the Board of Directors on June 11, 2025, which will discuss the first interim dividend for the financial year 2025-26. The meeting has generated quite a bit of interest in the market and you can see the trading volume wasn’t bad either. We will break down all the information for you, why it is important, and how it impacts investors.
Why Are Hindustan Zinc Shares Going up?
The latest spike in Hindustan Zinc’s shares is due to the company announcing that a meeting of the Board of Directors will be convened on June 11, 2025, to consider the declaration of an interim dividend. The meeting’s agenda will include approving the first interim dividend of FY 2025-26, as the record date for eligible shareholders is June 17, 2025. The declaration of this dividend has excited investors leading to trading of approximately 91 lakh shares on June 9, which exceeded the average weekly volume of 81 lakh shares.
In addition, favourable markets conditions are favourable; silver prices just reached multi-decade highs so that would make Hindustan Zinc a big beneficiary given that they are one of the largest producers of zinc, lead and silver globally. The stock is up about 27% in the past month along with YTD return of over 18%, making it one of the best producers in the metals and mining space.
Hindustan Zinc’s Dividend Track Record
Hindustan Zinc has a great record of returning money to shareholder in the form of dividends. In August 2024, they posted the 2024 interim dividend of ₹ 19 per share, and paid ₹ 5,091 crore of dividend to its promoter, Vedanta Ltd, which holds 63.42% of Hindustan Zinc. It became a lot of money because the current amount of retail shareholders is closing in on 7 lakh, with 2.48% of Hindustan Zinc held by as recently stated to the March 2025 quarter.
Both the announcement of the dividend and the allocation of funds down to each shareholder is especially exciting for institutional and retail investors alike. For these reasons people love Hindustan Zinc. Combining regularity with strong operational performance makes Hindustan Zinc a desirable investment option for those wanting dividends. It only gets better for the Goverment of India who holds 27.92% of Hindustan Zinc, and will benefit from the dividend if declared. An attractive stock for all involved.
What to Anticipate from the June 11 Board meeting
Investors will watch the June 11, 2025, Board meeting for the interim dividend (analysts believe it will be close to, or potentially higher than, previous dividends, given the financially strong position and commodity prices). Investors will also observe any updates on Hindustan Zinc’s production guidance, cost efficiencies, and agenda going forward, especially considering Vedanta Ltd.’s large-scale demerger, in which the group will be split into five public entities by the physical quarter ending in FY26.
In February 2025, shareholders and creditors either approved or proposed the demerger as a value-enhancing opportunity, so that the five businesses can remain focused within the separate monetary businesses in which the group has operated (aluminium; oil & gas; power; steel; base metals).
Hindustan Zinc as a large zinc and silver producer should be an essential part of the process, further diversification will support investor interest as a quality investment opportunity.
Market Performance and Analyst Perspective
As of June 9, shares of Hindustan Zinc were positioned at roughly ₹519.25, on the day gaining 3.5% and 10% in total over the last three days. The stock was off 28% over the last year but had shown good long-term performance, making Hindustan Zinc a stock that long holders adore.
The recent run up in price has been fueled by the expectation of a dividend and rising silver prices, maintaining the stock’s positive momentum into the summer and bodes well for its future fluctuations, as Hindustan Zinc has shown it can hold itself together.
Analysts are positive on Hindustan Zinc’s futures as well, identifying strong fundamentals, good price trading position, and commodity pricing trends such as the rise in metal prices as a positive potential contributor. Having low float also allows for stability as the Singh family and the Government of India hold over 91% which may also lead to higher price prospectively higher volatility during stable periods such as major quarterly announcements.
Why Investors Should Be Alert
Hindustan Zinc’s 4% share price increment just ahead of the June 11 board meeting indicates significant market confidence in the company related to dividend payouts and operational performance. This situation presents investors with the opportunity to benefit from dividend income and return on capital appreciation, especially in this market characterized by rising commodity costs.
The company has announced June 17, 2025 as the record date for dividend payments to shareholders, meaning prior to that date investors will need to take some action to position themselves for dividends. Also, the wider context of Vedanta’s demerger from Hindustan Zinc, and Hindustan Zinc’s unique place in the zinc and silver markets right now, is allowing investors some time to consider it for a diversified investment portfolio.
Conclusion
The recent run up in Hindustan Zinc’s share price just ahead of the board meeting scheduled for June 11, 2025 has been fueled by investor enthusiasm for an expected interim dividend and the underlying value of the company. Market participants are optimistic about the prospect of an interim dividend from a market leading company that is well managed and has exposure to positive commodity trends as a Vedanta subsidiary. Whether you are a dividend investor or a long-term wealth creator, Hindustan Zinc will be a stock to follow in the upcoming weeks.
Be sure to check back for updated news regarding the board meeting outcome and final dividend declaration. For more news and information about the stock market, feel free to subscribe to our newsletter and connect with us on social media!