Billionaire Anil Agarwal-led Vedanta Ltd has declared on November 22 an interim dividend of Rs 17.5 per equity share, which will lead to an outgo of Rs 6,505 crore for the mining major. This is the third interim dividend for the fiscal year 2022-23.
The company's board, which met on November 22, approved the interim dividend, which translates to 1750 percent of the face value of every share worth Rs 1, according to a stock exchange announcement.
"We wish to inform you that the Board of Directors of the Company through resolution passed by circulation on Tuesday, November 22, 2022 have approved Third Interim Dividend of ₹ 17.50 per equity share i.e. 1750% on face value of Re. 1/- per share for the Financial Year 2022-23 amounting to c. ₹ 6,505 crores, " Vedanta said in an exchange filing.
The record date for the purpose of payment of the dividend is November 30, the company said.
For the financial year 2022-23, Vedanta on April 29 had approved the first interim dividend of Rs 31.5 per equity share amounting to Rs 11,710 crore, and in the second interim dividend, it had announced a Rs 19.5 per equity share on July 20 and it resulted in a dividend payout of Rs 7,250 crore.
Also Read: Anil Agarwal explains why Gujarat was chosen over Maharashtra for Vedanta-Foxconn plant
For the year ending March 2022 Vedanta has declared an equity dividend of 4500.00% amounting to Rs 45 per share. At the current share price of Rs 310.00 this results in a dividend yield of 14.52%.
The company has a good dividend track report and has consistently declared dividends for the last 5 years.
Just less than three weeks ago, the company’s London-based parent, Vedanta Resources (VRL), discontinued its rating engagement with Moody’s Investor Services, as stated in a press release dated November 3 on the Singapore exchange. VRL has also asked Moody’s to withdraw all the outstanding ratings. Moody’s Investor Service had slashed the rating on Vedanta Resources’ debt deeper into junk and said fundraising efforts are taking longer than expected.
As of FY22, Vedanta has total debt of $117 billion. While the company managed to reduce its debt in FY22, it has picked up pace in the first half of FY23.
In the quarter ending September 2022 the company reported a 53 percent year-on-year (YoY) decline in consolidated profit after tax (PAT) at Rs 2,690 crore in the September quarter on weaker commodity prices and higher fuel costs.
Also Read: Vedanta to exit steel business, looks to sell Electrosteel: Report
Shares of the firm ended at Rs 310.05 on the BSE on November 22, up 0.71 percent from its previous close.
(This is a developing story. Please check back for more details)
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