Hindustan Copper (HCL) recently announced its highest ever dividend per share of 23.20 percent for FY22. The approval was given at the 55th Annual General Meeting (AGM). The company has already identified eligible shareholders for the dividend benefit.
Speaking at the company’s 55th Annual General Meeting, Chairman and CEO Arun Kumar Shukla said the company’s profits have been driven by direct sales of concentrate and higher LME prices for supply-demand imbalances. “During FY22, there has been very marginal production of cathode and CC wire rod due to the direct sales of concentrate by the company giving the same higher price,” said Shukla.
He said copper prices remained volatile on fears of an economic slowdown and supply-demand imbalances fueled a record recovery in 2021, pushing prices to a high of $10,730 per tonne in March 2022. “Since then, copper prices have been volatile due to fears of the global recession. Demand for copper will rise due to a tight supply situation coupled with declining quality of copper ore mined around the world, leading to a market environment for higher Copper demand will increase due to advancing implementation of hybrid and electric vehicles worldwide with associated charging infrastructure, US and EU decarbonisation policies and increasing emphasis on green energy to combat climate change,” said Shukla.
When will the dividend be paid?
In its application for registration, Hindustan Copper said: “Shareholders of the company at the 55th AGM held today via video conferencing/other audiovisual means approved the payment of dividend as recommended by the board of directors.”
Furthermore, the company said that the date of payment of dividend equal to 23.20 percent of the company’s paid-up capital (i.e. Rs.1.16 per share) is October 26, 2022.
On BSE, Hindustan Copper shares closed at Rs 100.65 each, down 3.36 percent. The market cap of the company is about Rs 9,733.10 crore.
In May of this year, the company announced a 23.20 percent dividend on paid-up capital. This would be a dividend of Rs 1.16 per share with a par value of Rs 5 each for the FY22 financial year. The payout for the dividend is Rs 112.17 crore.
Hindustan Copper had set September 22 as the record date to determine which shareholders will be eligible for the dividend benefit.
Dividends are corporate actions that are decided by a publicly traded company. They are distributed in the form of incentives from a company’s profits.
How Shareholders Get Dividend
According to the BSE FAQ, the company offers the option to deposit the dividend directly into the member’s bank account. The listing regulations also require companies to credit the dividend to members electronically.
Members are urged to make use of this facility to ensure that their dividend is credited to their bank account safely and quickly.
In doing so, shareholders must ensure that they have updated their bank account with their Demat account.
Hindustan Copper is the country’s only vertically integrated copper producing company, as it produces copper from the mining stage through the extraction, smelting, refining and casting of refined copper metal into downstream salable products.
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