Vedanta Dividend: Metals and mining major Vedanta said the company’s board has approved a second interim dividend of Rs 19.5 per share. The total payment will be Rs 7,250 crore. The previous dividend which he paid to his investors was Rs. 31.5 per share.
“We wish to inform you that the Board of Directors of the Company vide a resolution passed by Circulation on Tuesday, July 19, 2022, has approved the second interim dividend of Rs.19.50 per equity share i.e. 1950 per cent. 1/- per share for the financial year 2022-23 at the face value of Rs. C. 7,250 crore. The record date for payment of dividend is Wednesday, July 27, 2022. Payment of interim dividend as prescribed under the Act will be done within the time limit.
The Anil Agarwal-promoted company said that the record date for payment of dividend is July 27.
Vedanta’s move comes after its subsidiary Hindustan Zinc announced an interim dividend of Rs 21 per share last week. Hindustan Zinc had said there would be an outflow of Rs 8,873 crore from its dividend payment. Vedanta holds 64.9 per cent stake in Hindustan Zinc, while the government India Holds 29.5% stake in the company. In April, the company announced its first interim dividend, resulting in an outflow of Rs 11,710 crore.
Vedanta shares rose in early morning trade on July 20, a day after the company announced a huge second interim dividend. Stocks were also boosted by the government’s decision to cut additional excise duty imposed on crude oil production.
Vedanta’s Dividend and Stock Price History
In the last 12 months, Vedanta has declared a total dividend of Rs 76.50 per share, shows trendline data. The final dividend of Rs 31.50 was declared on May 6. Vedanta’s stock has fallen nearly 46 per cent from its 52-week high of Rs 440.80.
In its annual report released last week, the company had said it would distribute at least 30 per cent of its post-tax profit as dividend. Vedanta had said, “This will be subject to the board’s evaluation of various factors such as cash flow strength, economic conditions, commodity price cycles, natural calamities, etc.”
Rating agency Moody’s said in a recent report that the holding company (Vedanta Resources) had set a target of $4 billion (Rs 32,000 crore at current exchange rate) through deleveraging over the next three years.
“The large cash dividend is positive for Vedanta Resources as it offsets some of the liquidity and refinancing risk associated with the holding company’s debt maturity in the first half of FY23,” Moody’s said.
Vedanta was the top dividend paying firm in FY22, followed by TCS, ONGC, HCL Technologies, Indian Oil Corporation, Hindustan Unilever, Hindustan Zinc, ITC, SBI and Reliance Industries in the top 20 list.
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