Vedanta’s dividend to make promoters richer by Rs 1.9k cr

Vedanta has a history of rewarding shareholders with high dividends. Experts said that this helps the company attract investors looking for consistent income and enhances stock performance.

NEW DELHI: Metal and mining giant Vedanta Ltd has declared an interim dividend of `8.5 per share. This is the fourth time in the financial year 2024-25 that Vedanta has declared an interim dividend. Promoters, led by billionaire Anil Agarwal, will get Rs 1,874 crore for the fresh payout.

“…we wish to inform you that the Board of Directors of Vedanta Limited (the “Company”), at its meeting held today i.e. Monday, December 16, 2024, has considered and approved the Fourth Interim Dividend of Rs 8.5/- per equity share on face value of Rs 1/- per equity share for the Financial Year 2024-25 amounting to Rs 3,324 Crores,” said Vedanta in a regulatory filing.

The record date for payment of dividend is December 24, 2024, and the interim dividend will be duly paid within the stipulated timelines, added Vedanta. So far this financial year, Vedanta’s total dividend payout stands at Rs 16,799 crore.

It had earlier announced a dividend of Rs 11, followed by two other announcements of Rs 4 and Rs 20. The firm had paid Rs 29.5 per share as a dividend in FY24 and Rs 101.5 per share payout in FY2023. As promoters have a 56.38% stake in the company as of September 2024, they will receive a total payout of Rs 1,874 crore from the fourth dividend.

Vedanta has a history of rewarding shareholders with high dividends. Experts said that this helps the company attract investors looking for consistent income and enhances stock performance. Shares of Vedanta are up over 100% so far in 2024.

The payout also helps Vedanta’s parent company, Vedanta Resources, to meet its significant debt obligations. The interim dividends are often used by the promoter group to service this debt, as dividends flow up the chain.

Vedanta had reported a Rs 4,352 crore net profit for the quarter ended September and the company’s second-quarter net debt was lower by Rs 4,400 crore quarter-on-quarter to Rs 56,927 crore.

Record date for dividend payment Dec 24

The record date for payment of dividend is December 24, 2024, and the interim dividend will be duly paid within the stipulated timelines, added Vedanta. So far this financial year, Vedanta’s total dividend payout stands at Rs 16,799 crore. It had earlier announced a dividend of Rs 11, followed by two other announcements of Rs 4 and Rs 20. The firm had paid Rs 29.5 per share as a dividend in FY24 and Rs 101.5 per share payout in FY2023.