Vedanta Limited is one of the largest mining companies in India, with a strong presence in the global market as well. The company has a reputation for its sustainable mining practices and commitment to environmental conservation. With a diverse portfolio of minerals and metals, Vedanta plays a crucial role in driving economic growth and development in the regions where it operates. The company’s focus on innovation and technology has helped it stay ahead of the competition and maintain its position as a leader in the industry. Vedanta Limited continues to expand its operations and explore new opportunities for growth while also prioritizing the well-being of its employees, communities, and the environment.
Thursday morning saw a focus on Vedanta Ltd. shares after the Anil Agarwal-led business announced that its board will discuss a fourth interim dividend for FY25 on Tuesday, October 8. Vedanta has set Wednesday, October 16, as the record date to ascertain the equity shareholders’ entitlement to the dividend in question, should it be declared.
On September 2, the business’s board approved the third interim dividend for the current fiscal year at a rate of Rs 20 per share. This means that the total dividend payout for FY’25 is Rs 13,474 crore. Vedanta set the date for the dividend payment as September 10th. The board decided on July 26 to approve the second interim dividend, which is Rs 1,564 crore, for equity shares valued at Rs 4 each for the 2024–2025 period. The company approved the first interim dividend for FY’25, totaling Rs 4,089 crore, on May 16. The dividend was per equity share at Rs 11. Vedanta announced an interim dividend of Rs 29.5 per share for the entire year 2023-2024, which translates to Rs 10,966 crore for shareholders.As of June 30, promoters held a 56.38% stake in Vedanta.
VRL’s repayments are expected to remain significant in the next fiscal years, according to a recent note from ICRA. Even though the funds from the sale of Vedanta’s stake and the anticipated increase in Vedanta’s dividend have been used to cover the current year’s repayment obligations, the repayment is still significant at $800 million in FY26, and VRL would be exposed to refinancing risks due to the cash flow deficit that would arise without Vedanta’s support. The company that owns Vedanta Ltd., Vedanta Resources, does not anticipate having its loans rolled over and intends to reduce its debt by up to USD 3 billion over the next three years.
The stock of Vedanta Ltd. is currently trading at Rs. 480.70 per share and has been steadily rising due to the upcoming board meeting on October 8 to discuss the fourth interim dividend.
Conclusion: Vedanta Ltd. periodically announces its dividend; it was Rs. 29.5 per share last year and is currently Rs. 35 per share. This indicates that the business is expanding rapidly, and as a result, they wish to continue providing their promoters and shareholders with a higher dividend.
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.
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