Vedanta to Hold Board Meeting: Anil Agarwal-led Vedanta Ltd. announced a board meeting on May 16, 2024, to discuss the first interim dividend for FY25. The meeting will also explore fundraising strategies, including equity shares or convertible securities issuance. The proposed methods are not restricted, with the record date for any dividend set as May 25, 2024.
Decisions will be subject to regulatory and statutory approvals, including shareholder consent through a general meeting. The mining conglomerate distributed dividends totaling ₹37,573 crore in FY23, with previous instances featuring dividends of ₹11 and ₹18.5 per share. Vedanta’s subsidiary, Hindustan Zinc, declared a ₹10 per share interim dividend for FY25, resulting in a ₹2,743 crore payout for Vedanta.
During a February analyst meeting, Vedanta outlined plans to slash debt by $3 billion by FY27. The company aims to achieve this without accumulating additional incremental debt. However, concerns have arisen regarding Vedanta’s ability to finance debt repayments for this and next year. Earlier this year, Vedanta Resources, the parent company, obtained bondholders’ approval to restructure four bond series, including two due in 2024.
Vedanta Ltd. shares closed at ₹413.95, marking a gain of ₹3.20 or 0.78% on the BSE.
Vedanta to Hold Board Meeting: Vedanta Limited plans to discuss dividends and fundraising in a board meeting on May 16, 2024. The meeting aims to address the following agenda items:
1. Considering the possibility of declaring the first interim dividend for FY 2024-25. The record date for determining shareholder entitlement to this dividend, if approved, is set for May 25, 2024.
2. Exploring options for raising funds through the issuance of equity shares or convertible securities. This includes various methods such as public offers, rights issues, ADRs/GDRs, FCCBs, QIPs, preferential issues, or other permissible means, subject to regulatory and statutory approvals. Approval of the notice for a general meeting will be sought for obtaining shareholders’ consent.
To qualify for Vedanta Ltd’s dividend, shareholders must be listed on the record date. This date, crucial for determining eligibility, confirms individuals entitled to the announced dividend. Vedanta Ltd set May 25 as the record date for its first interim dividend.
Vedanta Limited’s stock performance reflects its market dynamics. Its 52-week high reached Rs 420.00 per share on 03/05/2024, while the low was Rs 207.85 per share on 28/09/2023. Over the last 6 months, Vedanta shares yielded a 71% return, rising 50% in the last year and 168% in the last 5 years.
Vedanta Ltd has a rich dividend history, having announced 41 dividends since July 23, 2001. In the past 12 months, an equity dividend of Rs 29.50 per share was declared. With the current share price at Rs 414.0500, Vedanta Ltd offers a notable dividend yield of 7.12%.
Vedanta Limited, a leading natural resources conglomerate, operates in various sectors including aluminium, zinc-lead-silver, oil and gas, iron ore, steel, copper, power, ferro alloys, nickel, semiconductor, and glass. With strategic assets in India, South Africa, Namibia, and Liberia, it aims to generate long-term value and robust cash flows. Committed to achieving carbon neutrality by 2050 or earlier, Vedanta has pledged $5 billion over the next decade to hasten its transition to net-zero operations, as per its official website.
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