Vedanta shares slip further today after board declares fourth interim dividend; stock down 1 percent

Over the last five trading sessions, Vedanta’s share price has risen on investor confidence in robust dividend payouts and improved financial performance.

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Shares of Vedanta Ltd opened lower on Tuesday, December 17, extending yesterday's decline and paring recent gains, after the company's board approved the fourth interim dividend and announced details. Vedanta share price fell 1.1 percent to Rs 508 on the NSE, extending yesterday’s 1.15 percent decline.

Billionaire Anil Agarwal-led Vedanta Monday declared the fourth interim dividend for FY25 at Rs 8.5 per share. The dividend payout amounts to Rs 3,324 crore, taking its total dividend distribution for the current financial year to Rs 16,799 crore. The record date for determining shareholders eligible for the payout has been set as December 24, 2024.

Vedanta stock performance

Over the last five trading sessions, Vedanta’s share price has gained 1.5 percent, rising ahead of the board meeting on investor confidence in robust dividend payouts and improved financial performance. Notably, Vedanta’s stock has doubled over the past year, outperforming the benchmark NSE Nifty 50, which has gained less than 16 percent in the same period. The rally has taken Vedanta’s market capitalisation to over Rs 1.9 lakh crore.

Vedanta's dividend payouts

Vedanta’s fourth interim dividend reflects its continued focus on returning value to shareholders. In FY25 so far, the company has declared dividends totaling Rs 43.5 per share, including the latest payout.

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The company’s robust dividend strategy also supports liquidity at its UK-based parent, Vedanta Resources Plc, which has been actively deleveraging through refinancing efforts. Vedanta Resources recently raised over $2 billion through stake sales in Vedanta Ltd to improve its financial position, address debt maturities, and infuse equity into group businesses.

During its September quarter earnings call, Vedanta said that future obligations at the parent level would be financed via routine dividends and brand fees, ensuring self-sufficiency.

Vedanta’s promoters reduced their shareholding from 59.32 percent to 56.38 percent in the July-September quarter, while foreign institutional investors (FIIs) and mutual funds increased their stakes to 11.45 percent and 7.62 percent, respectively.

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