Vedanta shares Rs 3,324 cr dividend; dividend history, yield, peer comparison, payment date & more
Shares of Vedanta Ltd will be in focus on Tuesday morning after the Anil Agarwal-led company announced the fourth interim dividend, totalling Rs 3,324 crore for the ongoing financial year. Vedanta said its board approved a dividend of Rs 8.50 per share for FY25 while suggesting Tuesday, December 24, 2024, as the record date for the purpose of payment of dividend. The interim dividend will be duly paid within the stipulated timelines as prescribed under law, Vedanta said.
Vedanta had announced Rs 20 per share as third interim dividend, worth Rs 7,821 crore. Vedanta earlier announced interim dividends of Rs 4 per share and Rs 11 per share, respectively. With this, Vedanta announced dividends worth Rs 43.50 per share for FY25. Promoters owned 56.38 per cent stake in Vedanta as on September 30.
Vedanta peer comparison — high dividend paying cos
In the past 12 months, Vedanta has announced Rs 54.50 per share dividend. It is leading the largecap pack in terms of dividend payout. Vedanta’s dividend yield (excluding the announced one) stood at 9 per cent against 6 per cent for Coal India (Rs 26 dividend per share in past 12 months), 6 per cent for Hindustan Zinc Ltd (Rs 29 per share), 5 per cent for ONGC (Rs 12.50 per share) and 5 per cent for IOC (Rs 7 per share). IT firms HCL Technologies Ltd and Infosys announced dividends of Rs 54 and Rs 49, respectively, but dividend yields stayed at 2-3 per cent.
Vedanta dividend history
Vedanta had declared a total of Rs 10,959 crore or Rs 29.50 per share dividend in FY24. The dividend yield stood at 10.86 per cent. It announced Rs 101.50 per share dividend in FY23, amounting to Rs 37,572 crore. In FY22, Vedanta shared Rs 16,689 crore or Rs 45 per share dividend with shareholders. FY21 saw Vedanta announcing a total dividend of Rs 3,519 crore or Rs 9.50 per share dividend.
Vedanta rating
Vedanta said India Ratings and Research Private Limited has upgraded ratings on Non-Convertible Debentures (NCDs) to ‘IND AA-/Rating Watch with Developing Implications’ and the rating on commercial paper has been withdrawn.
Background
There were earlier concerns over the Vedanta parent Vedanta Resources’ mounting debt. Vedanta Resources sold 2.7 per cent stake in Vedanta in the June quarter. Vedanta also offloaded 1.51 per cent stake sale in Hindustan Zinc Ltd, a group firm. Besides, Vedanta raised $1 billion from qualified institutional placement (QIP), which analysts felt could lead to an improvement in liquidity and financial flexibility. The moves were seen positive, as they may help retire high-cost borrowing, resulting in lower interest outflow and release of pledged shares.
Vedanta is also in the process of corporate restructuring. On September 29, 2023, Vedanta Ltd unveiled a demerger plan to create 6 independent pure-play entities, aiming to unlock value, attract investments, and enhance sector-specific strengths. Equirus said each entity will benefit from focused strategies, capital allocation, and management autonomy, moving from centralized to independent operations.
“Investors can reallocate based on individual commodity outlooks, likely prompting a re-rating. With NCLT approval expected by March 2025, the demerger is positioned to drive long-term growth. Vedanta’s Rs 1.8 lakh crore market cap could potentially reach to Rs 3 lakh crore; post-demerger,” Equirus said recently.
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