The Board of Directors of Vedanta approved a third interim dividend of Rs 20 per share on September 2, 2024, totaling Rs 7,821 crore for FY 2024-25. Earlier this year, Vedanta declared a Rs 4 per share dividend in July and an Rs 11 per share dividend in May.
Vedanta shares surged by 2% in early trade on September 3, reaching Rs 465.45 on the NSE, following the company’s announcement of its third interim dividend of Rs 20 per share.
Read More: Stock Market Updates: Sensex Opens Higher, Nifty Below 25,300; HAL Gains 3%, Airtel Sheds 2%
Dividend Details and Approval
The Board of Directors approved the dividend during a meeting on September 2, 2024. This payout amounts to Rs 7,821 crore for the Financial Year 2024-25, based on the face value of Rs 1 per equity share.
The stock opened higher by half a percent compared to the previous session’s close. Earlier in the fiscal year, Vedanta had declared a second interim dividend of Rs 4 per share in July, totaling Rs 1,564 crore, and a first interim dividend of Rs 11 per share in May, amounting to Rs 4,089 crore.
Read More: Premier Energies IPO Makes Blockbuster Stock Market Debut, Posts 120% Listing Gains
Brokerage Rating and Debt Overview
International brokerage Citi has reiterated its ‘buy’ rating on Vedanta with a target price of Rs 430 per share, suggesting a minor downside of approximately 7%.
The firm’s net debt, excluding Hindustan Zinc, stood at around Rs 61,000 crore as of June 2024. Since then, Vedanta has raised nearly Rs 8,500 crore through a Qualified Institutional Placement (QIP), issuing 193.2 million shares at Rs 440 per share.
Read More: Baazar Style Retail IPO Closes Today: Should You Apply? Check Subscription Status, GMP Today, Review
Restructuring Plans
In September of the previous year, Vedanta announced a plan to demerge its business units into independent, pure-play companies. This restructuring aims to unlock value and attract significant investment for the expansion and growth of its various businesses, including aluminium, oil & gas, power, steel, ferrous materials, and base metals. The zinc and new incubated businesses will remain under Vedanta Limited.
Stock Performance in Last One Year
The shares of Vedanta have demonstrated positive returns across various time intervals. In the last month, the stock delivered a positive return of 12.16%. Over the past six months, it exhibited strong momentum with returns of 67.63%, indicating a robust performance.
Year-to-date figures further emphasized the stock’s bullish trend, recording an impressive growth of 80.05%. Looking at the broader horizon, the shares have shown consistent strength, given returns of over 91.50% in the last year.
