Vedanta Limited, a major player in mining and metals, experienced a positive surge in its shares on December 19. This boost came after the company's board gave the green light for a second interim dividend for the financial year 2023-24 (FY24). The approved dividend stands at Rs 11 per equity share, representing a 100 per cent increase on the face value of Re 1 per equity share. The total amount allocated for this interim dividend reached a substantial Rs 4,089 crore.
To facilitate the smooth payment of this dividend, Vedanta has set the record date for December 27, 2023. The company emphasized its commitment to adhering to legal timelines for the payment process, as stipulated by regulations.
As of 10:05 am on the same day, Vedanta shares were trading slightly higher at Rs 261.30 on the National Stock Exchange (NSE). However, it's noteworthy that the stock has faced challenges throughout the year, witnessing a decline of over 17 per cent. This performance contrasts with the benchmark Nifty 50, which has seen a commendable surge of over 17 per cent during the same period.
Taking a closer look at Vedanta's dividend history, in May of the same fiscal year (FY24), the company had already declared its first interim dividend at Rs 18.50 per share. This move had an ex-dividend date of May 30. Over the past year, Vedanta, under the leadership of Anil Agarwal, has declared equity dividends amounting to Rs 51.50 per share. Since July 2001, the company has consistently declared dividends, totalling 41 during this period.
Zooming out to the broader financial picture, Vedanta's dividend outflow has witnessed a significant increase in recent years. In FY23, the company disbursed a total dividend of Rs 37,572 crore. Comparatively, it declared Rs 16,689 crore in dividends in FY22 and Rs 3,519 crore in FY21.
Looking ahead, the board of directors at Vedanta has scheduled a meeting on December 19 to deliberate on and approve the proposal for issuing non-convertible debentures (NCDs) on a private placement basis. The company clarified that this move is part of its routine refinancing activities conducted in the ordinary course of business.
In the last three months, Vedanta's shares have witnessed a commendable surge of around 10 per cent. This outpaced the broader market, with the Nifty rising by 5 per cent during the same period. This positive momentum reflects investor confidence in Vedanta's strategic decisions and financial performance.
