The oil-to-metals conglomerate Vedanta Limited (VDL) on Thursday said it would distribute its accumulated general reserve of Rs 12,500 crore as dividends to its shareholders. The company will seek approval for disbursing the amount in its board meeting on 11 October 2022.
The Anil Agarwal-led Vedanta Limited believes the funds represented by the General Reserves are in excess of the Company's anticipated operational and business needs in the foreseeable future. The special dividend of Rs 12,500 crore is likely to be Rs 33 to 35 per share.
“These excess funds can be utilized to create further shareholders' value, in such manner and to such extent, as the Board of the Company in its sole discretion, may decide, from time to time and in accordance with the provisions of the Act and other Applicable Law,” said the company in an exchange filing.
Vedanta recently announced that it along with Foxconn Group will invest more than Rs.1.54 lakh crore to set up the semiconductor ecosystem in Gujarat. The company said it would generate employment of around 1 lakh for the state.
“Steady growth in sales volume, balanced capital expenditure for continuing operations has helped the Company achieve a strong track record of generating cash flows,” said the company.