Vedanta Dividend: Shares of Vedanta rose sharply in the morning trade on July 20, a day after the company announced a hefty second interim dividend. Also, the government’s decision to slash additional excise duty imposed on crude oil production gave a boost to the stock.
Vedanta said that the company board has approved a second interim dividend of Rs 19.5 per share. The total payout would amount to Rs 7,250 crore. The previous dividend that it had paid to its investors was at Rs 31.5 per share.
The filing by the company said, “We wish to inform you that the Board of Directors of the Company through a resolution passed by circulation on Tuesday, July 19, 2022, have approved Second Interim Dividend of Rs 19.50 per equity share i.e. 1950 per cent on the face value of Re. 1/- per share for the Financial Year 2022-23 amounting to c. Rs 7,250 crores. The record date for the purpose of payment of dividend is Wednesday, July 27, 2022. The interim dividend will be paid within stipulated timelines as prescribed under the law”.
The Anil Agarwal-promoted company said the record date for the purpose of payment of the dividend is July 27.
Vedanta’s move comes close on the heels of the announcement by its subsidiary, Hindustan Zinc, last week of an interim dividend of Rs 21 per share. Hindustan Zinc had said that its dividend payout would entail an outflow of Rs 8,873 crore. Vedanta has a 64.9 per cent stake in Hindustan Zinc, while the Government of India holds 29.5 per cent in the company. In April, the company had announced its first interim dividend resulting in an outflow of Rs 11,710 crore.
Vedanta’s Dividend & Stock Price History
In the past 12 months, Vedanta has declared dividends totalling Rs 76.50 per share, shows Trendlyne data. The last 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 that it will distribute a minimum 30 per cent of its attributable profit after tax as dividends. “This will be subjected to the board’s evaluation of various factors, such as robustness of cash flows, economic situation, commodity price cycles, natural calamities, etc. for overall optimal cash management,” Vedanta had said.
Ratings 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) by way of deleveraging in the next three years.
“The large cash dividend is credit positive for Vedanta Resources because it staves off some of the liquidity and refinancing risk tied to the holding company’s debt maturities in the first half of FY23,” Moody’s said.
Vedanta was the top dividend-paying firm 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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