Hindustan Zinc's $1.3 bn dividend plan raises concerns over cash use

Hindustan Zinc Ltd.’s plan to dole out $1.3 billion in dividends, a fourth such disbursement to shareholders this financial year, is raising concerns over the use of cash at Anil Agarwal’s zinc unit.
 

The Rajasthan-based miner will pay an interim dividend of 26 rupees per share totaling 109.9 billion rupees, according to an exchange filing Tuesday. Key beneficiaries will be Agarwal’s Vedanta Ltd., which owns about 65% of Hindustan Zinc, and the Indian government that holds around 30%. London-based Vedanta Resources Ltd. is the ultimate holding company.

The extra amount would bring some relief to Agarwal, who has been forced