Vedanta Ltd, led by Anil Agarwal, has declared an interim dividend of Rs 20.50 per share, amounting to Rs 7,621 crore. This is the fifth payout by the company for the current fiscal year. The payout is expected to benefit Vedanta Resources, the parent company, which has been looking to reduce its debt. The promoters hold close to 69.69% in Vedanta and will receive Rs 5,211 crore from the latest payout.
The board of Vedanta Ltd approved the fifth interim dividend on Tuesday, which amounts to 2050% on the face value of Re 1 per share for the financial year 2022-23. The record date for the payment of dividend is April 7.
The announcement of the payout was anticipated by the market after Hindustan Zinc declared a fourth interim dividend of Rs 26 per share, amounting to Rs 10,985.83 crore. Vedanta holds 64.92% of HZL.
Vedanta Resources has been attempting to reduce its debt through the sale of its zinc assets for a cash consideration of $2,981 million to HZL. However, the Indian government, which holds 29.54% stake in Hindustan Zinc, has opposed the move.
In an attempt to ease investor concerns over its financial position, Vedanta Resources had earlier stated that it has enough means to meet its repayment liabilities in the coming quarters. It also revealed that it is in an advanced stage of finalization to tie up $1.75 billion through a combination of syndicate loan and bilateral bank facilities.
The company has prepaid all its debt that was due for repayment till March 2023 and has deleveraged $2 billion in the past 11 months. Vedanta is confident of meeting its liquidity requirements for the quarter ending June 2023.
The announcement of the fifth interim dividend is a positive development for Vedanta and its shareholders, as it helps reduce the parent company’s debt burden. Additionally, the company’s efforts to shore up its liquidity position are expected to strengthen investor confidence in the company’s financial position.
