Vedanta board to consider third interim dividend for FY25 on September 2

Based in Mumbai, Vedanta Limited is a multinational mining company primarily involved in iron ore, gold, and aluminum mining in Goa, Karnataka, Rajasthan, and Odisha. On August 28, Vedanta Ltd. made an announcement on Wednesday, saying that its board will convene the following week to deliberate and authorize the third interim dividend for the current fiscal year (2024–25). The dividend record date is set at September 10, 2024, and the board meeting is set for September 2. The company last month approved the second interim dividend for 2024–2025.

Vedanta’s Statement:

“Vedanta filed a report with the BSE stating that the board of directors of the company is proposed to meet on Monday to consider and approve the third interim dividend on equity shares, if any, for the financial year 2024–25.” “Vedanta added in its statement today that Tuesday, September 10, 2024, is the record date for the purpose of determining the entitlement of the equity shareholders for the said dividend, if declared.”

Previous history of Vedanta Ltd. dividend:

Vedanta Ltd. approved a second interim dividend of Rs. 4 per share for the current fiscal year in July. In May, Vedanta Ltd. also approved its first interim dividend of Rs. 11 per share. The record date for the first interim dividend was Saturday, May 25, 2024.

Vedanta Ltd. issued dividends close to Rs. 101.4 per share in FY23 and Rs. 29.5 per share in FY24, leading to handsome dividend yields for investors and Vedanta’s parent (Vedanta Resources), which holds more than 56% of the company’s shares.

Vedanta raised the Rs. 30000 crore via QIP:

The mining major raised around Rs. 30,000 crore through various instruments such as qualified institutional placement (QIP), offer for sale (OFS), and dividend to pursue further deleveraging and growth.

Proceeds from Vedanta Ltd’s Rs. 8,500 crore QIP, Hindustan Zinc’s OFS of Rs. 3,200 crore, and Rs. 5,100 crore from the second interim dividend, coupled with existing cash reserves of Rs. 13,000 crore, will create a reserve of Rs. 30,000 crore after the conglomerate receives all the funds.

Vedanta stock price declined 1% today:

The Vedanta stock price is right now running at Rs. 461.60 per share, and towards the end of the day we can see the correction in the stock price.

Conclusion: Vedanta has a long history of providing dividends to its shareholders, and the 3rd interim dividend for FY25 is set to be released next month.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.