Vedanta Declares ₹8.5 Per Share Dividend, Promoters to Receive ₹1,874 Crore

Vedanta Limited owned by industrialist Anil Agarwal is set to remain in focus in the coming days as the company has announced its fourth interim dividend of ₹8.5 per share. This decision was approved by the board on Monday December 16, after the markets closed. The announcement follows the company’s December 12 exchange filing, which hinted at a board meeting to deliberate on the interim dividend.

Promoters holding 56.38% of Vedanta, are expected to receive ₹1,874 crore as part of the dividend distribution. This payment reinforces Vedanta’s status as one of the top dividend-paying companies in India.

Details About the Dividend

Initially, Vedanta’s board meeting to consider the fourth interim dividend was scheduled for October 2024. However, unforeseen circumstances led to a postponement. The record date for the dividend payout is now set for December 24, 2024.

Vedanta, which operates across diverse sectors like aluminum, zinc, copper, and oil & gas, has already distributed ₹35 per share as dividends this year in three tranches. The company paid ₹11 and ₹4 per share as the first two interim dividends, followed by ₹20 in the third tranche.

With this latest payout, Vedanta has now distributed ₹43.5 per share for the ongoing financial year, exceeding the ₹29.5 per share paid in FY24. Notably, the company had issued over ₹100 per share as dividends in FY23, setting a high benchmark for shareholder returns.

Ongoing Restructuring Process

Vedanta is currently in the process of splitting the company into six listed entities. The proposed restructuring will allow shareholders to receive shares in each of the newly listed companies corresponding to their current holdings. This strategic move aims to enhance value for shareholders and improve operational efficiency. The company has targeted the completion of this restructuring by the end of FY25.

Performance of Vedanta Shares

Vedanta Limited’s stock closed at ₹513.5 on Monday, marking a 1.1% decline for the day. Despite this, the stock has delivered remarkable returns in 2024, doubling its value with a 102% gain so far. This is the best calendar-year performance for Vedanta since 2021, when the stock rose by 110%.

However, it is worth noting that the shares delivered negative returns in both 2022 and 2023, making this year’s performance a significant recovery. The company’s consistent dividend payouts and restructuring initiatives have played a vital role in restoring investor confidence.

Prominent Role of Dividends in Vedanta’s Strategy

Vedanta’s dividend strategy reflects its commitment to rewarding shareholders, particularly during challenging market conditions. The company’s robust cash flow from operations in key sectors, including mining and energy, has enabled these consistent payouts.

The interim dividend decisions further highlight Vedanta’s focus on maintaining shareholder value while undergoing significant structural changes. This balance between payouts and strategic business shifts has established Vedanta as a market leader in shareholder returns.

Future Prospects for Vedanta

As the company continues with its restructuring efforts, market experts anticipate more updates in the coming quarters. Shareholders will closely watch developments surrounding the listing of six separate entities, as it promises to unlock additional value.

Vedanta’s diversified business portfolio and strong operational results have positioned it to sustain long-term growth while delivering returns to investors. The recent dividend announcement underscores its financial stability and commitment to creating value.