New Delhi: Vedanta Ltd, led by Anil Agarwal, has approved the third interim dividend of Rs 20 per share for the present fiscal year, bringing the total dividend payout for FY'25 to Rs 13,474 crore. The board authorized the payment of the second interim dividend for the year 2024-25 on July 26, amounting to Rs 1,564 crore at Rs four per equity share. On May 16, the company authorized a dividend payment of Rs 11 per equity share for FY'25 totaling Rs 4,089 crore. This brings the cumulative dividend for 2024-25 up to Rs 13,474 crore.
Vedanta Ltd stated in a BSE filing that the board of directors approved the third interim dividend of Rs 20 per equity share for the financial year 2024-25 totaling Rs 7,821 crore during their meeting on Monday, September 2, 2024. The dividend payment date is set for September 10, as mentioned in the filing. In the same period in 2023-24, Vedanta announced a total interim dividend of Rs 29.5 per share, totaling Rs 10,966 crore for shareholders.
As per Vedanta's investor presentation, investors have seen a total shareholding return and dividend yield of 276 pc and 65 pc over five years until June 30, 2024, due to the consistent flow of dividends and capital appreciation. Earlier reports indicated that Vedanta Ltd has amassed Rs 30,000 crore through a recent qualified institutional placement (QIP) and offer-for-sale (OFS) to continue reducing debt and expanding. Vedanta could use this large amount of money to quickly reduce its debt, enhance its financial setup, and fund its innovative projects in order to reach its goal of generating a USD 10 billion EBITDA in the near future. The mining company had a debt of Rs 61,300 crore by June 30. Vedanta Resources, the owner of Vedanta Ltd, has no plans to extend its loans and aims to reduce up to USD 3 billion in debt in the next three years.
Vedanta Ltd's dividend payout will assist Vedanta Resources in reducing its current debt. Over the past two years, Vedanta Resources has decreased its debt by close to USD 4 billion through a mix of dividend payments from its Indian subsidiary and extending the maturity of its existing debt. The company's upcoming goal is to pay back an additional USD 3 billion within the next three years, ultimately boosting its liquidity and enabling Vedanta Ltd to invest in various expansion initiatives.
At the same time, the company is progressing as planned with its demerger following the approval of secured lenders and the stock exchanges. The scheme has been submitted to the National Company Law Tribunal (NCLT) for approval. The planned de-merger is a straightforward vertical separation that will unlock value and bring in significant investment for the growth of each separated business. The demerger will simplify the corporate structure to create independent businesses focused on specific sectors, offering investment opportunities to Indian and global investors, including sovereign wealth funds and strategic investors.
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