Vedanta Board Declares Second Interim Dividend; Know the amount, date of registration, other details

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Vedanta dividend: Shares of Vedanta rose sharply in morning trading on July 20, a day after the company announced a second interim dividend. In addition, the government’s decision to reduce additional excise duties imposed on crude oil production gave the stock a boost.

Vedanta said the company’s board had approved a second interim dividend of Rs 19.5 per share. The total payout is said to be Rs 7,250 crore. The previous dividend it paid to its investors was Rs 31.5 per share.

The company’s filing stated: “We wish to inform you that the Board of Directors of the Company, through a resolution passed by circulation on Tuesday 19th July 2022, has approved a second interim dividend of Rs 19.50 per share, or 1950 per cent on the par value of Re. 1/- per share for the financial year 2022-23 amounting to c. Rs 7,250 crores. The record date for the payment of the dividend is Wednesday, July 27, 2022. The interim dividend will be paid within the deadlines stipulated in accordance with the law”.

The company promoted by Anil Agarwal said the record date for the purpose of dividend payment was July 27.

Vedanta’s move follows the announcement by its subsidiary, Hindustan Zinc, last week of an interim dividend of Rs 21 per share. Hindustan Zinc had said its dividend payout would result in an outflow of Rs 8,873 crore. Vedanta owns a 64.9% stake in Hindustan Zinc, while the Indian government owns 29.5% of the company. In April, the company announced its first interim dividend, resulting in an outflow of Rs 11,710 crore.

Vedanta Dividend and Share Price History

Over the past 12 months, Vedanta has declared dividends totaling Rs 76.50 per share, according to data from Trendlyne. The last dividend of Rs 31.50 was declared on May 6. Vedanta’s stock fell nearly 46% from its 52-week high of Rs 440.80.

In its annual report released last week, the company said it would distribute at least 30% of its after-tax attributable profit as dividends. “This will be subject to the board’s assessment of various factors, such as cash flow strength, economic conditions, commodity price cycles, natural disasters, etc. for optimal overall cash management. “, had declared Vedanta.

Rating agency Moody’s had said in a recent report that the holding company (Vedanta Resources) had set a target of $4 billion (Rs 32,000 crore based on the current exchange rate) in terms of deleveraging at the over the next three years.

“The large cash dividend is positive for Vedanta Resources as it avoids some of the liquidity and refinancing risk associated with the holding company’s debt maturities in the first half of FY23,” Moody’s said.

Vedanta was the top dividend paying company in FY22, followed by companies such as TCS, ONGC, HCL Technologies, Indian Oil Corporation, Hindustan Unilever, Hindustan Zinc, ITC, SBI and Reliance Industries among others in the top 20 list.

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