Vedanta shares gain after board approves second interim dividend for FY24

Shares of Vedanta Limited gained over 1 percent on December 19 after the company approved a second interim dividend of Rs 11 per equity share, which is 100 percent on a face value of Re 1 per equity share for the financial year 2023-24 (FY24). The total amount of the interim dividend stood at Rs 4,089 crore.

“The record date for the purpose of payment of dividend shall be December 27, 2023, and the interim dividend shall be duly paid within the stipulated timelines as prescribed under law,” the mining and metals major said in a regulatory filing.

At 10:05am, Vedanta shares were trading marginally higher at Rs 261.30 on the National Stock Exchange (NSE). So far this year, the stock has tanked over 17 percent, underperforming the benchmark Nifty 50 which has surged over 17 percent during this period.

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Earlier in May, Vedanta had declared its first interim dividend of Rs 18.50 per share for FY24. The stock had turned ex-dividend on May 30. Since July 2001, Vedanta has declared 41 dividends. In the past one year, the Anil Agarwal-led company has declared equity dividend amounting to Rs 51.50 per share.

The dividend outgo by Vedanta has surged in the last few years. In FY23, it paid a total dividend of Rs 37,572 crore. Vedanta declared Rs 16,689 crore in dividends in FY22 and Rs 3,519 crore in FY21.

The board of directors of the Vedanta will meet on December 19 to consider and approve the proposal for issuance of non-convertible debentures (NCDs) on a private placement basis, which the company said is part of its routine refinancing that is undertaken in the ordinary course of business.

In the past three months, Vedanta shares have surged around 10 percent as against a 5 percent rise in Nifty.

Also read | Vedanta approves second interim dividend of Rs 11 per share for FY24

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