Shares of Vedanta gained as much as 5.2% on Wednesday as investors cheered dividend payout of 21.30 per share by its subsidiary Hindustan Zinc.

                    

At 10:50 am, shares of Vedanta were 4% higher at 102.75. On the other hand, Hindustan Zinc stock was 3% higher at 229.60, while the benchmark index, Sensex gained 0.87% to 40898.

Post its September quarter results, Hindustan Zinc declared interim dividend of 21.30 , amounting to 9000 crore. Major part of the dividend will go to Vedanta Limited which holds 64.92% in the company.

Latest shareholding data showed that billionaire Anil Agarwal-led Vedanta held 274.31 crore shares, or 64.92%, stake in the company as of 30 September which amounts to 5,843 crore.

Earlier this month, Vedanta's delisting failed as per terms of delisting regulations. The promoters had sought to buy out 169.73 crore shares or 47.67% stake held by the public to delist the firm.

Since the beginning of the year, Vedanta shares have declined 33% against a fall of 0.86% in the Sensex. Hindustan Zinc gained 9%.

Hindustan Zinc’s revenue increased 25% year-on-year to 5660 crore in September quarter primarily due to higher silver volumes coupled with higher silver prices. Its EBITDA grew 39% YoY to 2950 crore on strong revenue growth as well as lower cost.

The management of Hindustan Zinc said that zinc demand in India has recovered to pre-covid levels and global demand is also recovering gradually, led by China. However, it expects global zinc demand to contract by 5–6% in 2020.

“We expect EBITDA for HZL to grow at a 20% CAGR over FY20–22, primarily owing to a 9% CAGR in refined metal volumes to 1,034kt and higher silver prices," said Motilal Oswal Financial Services in a note.