News

Published: December 19, 2023
Updated: December 19, 2023

Vedanta Unveils Second Interim Dividend of Rs 11 Per Share, Totaling Rs 4,089 Crore

Strategic Dividend Declaration:

Vedanta Ltd takes centre stage as it announces a substantial second interim dividend of Rs 11 per share for FY24, amounting to an impressive Rs 4,089 crore. The Board of Directors, in a meeting on December 18, 2023, approved this dividend, reinforcing the company's commitment to shareholder value.

Record Date Set:

Investors take note as Vedanta discloses that the record date for the dividend's payment is scheduled for Wednesday, December 27. The company assures that the interim dividend will be promptly disbursed within the legally stipulated timelines.

Official Announcement:

In a BSE filing, Vedanta states, "The Board of Directors of the Company...has approved the Second Interim Dividend of ₹ 11/- per equity share...for the Financial Year 2023-24 amounting to c. ₹ 4,089 Crores." This bold move reflects the company's confidence in its financial position and future prospects.

Historical Dividend Trends:

A glimpse into Vedanta's recent past reveals a proactive approach to dividend payouts. Earlier in the year, the board approved the first interim dividend of 18.50 per equity share for FY 2023-24. The company has consistently rewarded its shareholders, with dividend turn ex-dividend in April (Rs 20.50 per share) and February (Rs 12.50 per share).

Rising Dividend Outgo:

Vedanta's commitment to rewarding its investors is evident in the increasing quantum of dividend outgo. The total dividend for FY23 reached an impressive Rs 37,572 crore, a significant leap from the Rs 16,689 crore declared in FY22 and Rs 3,519 crore in FY21.

Market Response and Concerns:

Despite the positive dividend declaration, Vedanta's stock has faced challenges in 2023, witnessing a decline of 17.56% year-to-date. Shareholding data reveals that promoters hold a significant 63.71% stake in Vedanta as of the end of the September quarter.

Debt Refinancing Concerns:

S&P Global Ratings expresses concerns over delays in Vedanta Resources' debt refinancing, raising questions about the parent company's debt maturities in the coming months. The proposed liability management exercise involving $3.2 billion dollar-denominated bonds is seen as a distressed transaction.

Future Strategies:

Vedanta Resources aims to address the impending bond maturities through a strategic mix of cash and new bonds. The plan includes exchanging a portion of existing bonds with new ones maturing in later years, aiming to ensure financial stability and address market concerns.

Vedanta's bold dividend declaration signals confidence in its financial strength, even as it navigates challenges in the market. Shareholders await the upcoming record date with anticipation, and the company's strategic approach to debt refinancing reflects a commitment to long-term stability. As Vedanta positions itself for the future, investors will closely monitor its financial strategies and market response.