Sunday, June 9, 2024
Home News Vedanta shares gain 3% after announcement of 2050% dividend payout

Vedanta shares gain 3% after announcement of 2050% dividend payout


After announcing that it will pay a fifth dividend for the fiscal 2022-23 period that begins on Friday, Vedanta Ltd., run by billionaire Anil Agarwal, saw its shares rise nearly 3% in trade on Wednesday.

According to Tuesday’s exchange filing, the company will pay a dividend of 7,621 crore, or 20.50 percent of the face value of one share. The statement stated that the record date for the dividend payment is Friday, April 7, 2023.

CRISIL downgraded the outlook on Vedanta’s non-convertible debentures and long-term bank facilities from “stable” following the announcement, joining the club of global rating agencies.

The reduction in the cash surplus ratio for one-year maturities for FY23 and FY24 reflects the possibility of higher-than-expected financial leverage and lower financial flexibility.

“This is due to increased cash outflow from Vedanta in the form of dividends to its parent company’s larger maturing debt obligations in Vedanta Resources Ltd (VRL).” Crisil stated

The resignation of Vedanta’s acting chief financial officer, Ajay Goel, which took effect on April 9 and comes at a time when questions are being raised regarding the group’s growing debt, also served as a counterbalance to the announcement of the dividend payment.

The successor, according to the company, will be announced at a later date.

Since the Indian government strongly opposes Vedanta Resources’ plans to raise $3 billion by selling a zinc manufacturing unit to Hindustan Zinc, the company is heavily relying on dividends from its units to help reduce its $7.7 billion net debt.

Concerned about the high valuations of related party transactions, the government, which owns about 30% of Hindustan Zinc, has threatened legal action to prevent the sale.

Including earlier dividends, Vedanta’s annual payout will be approximately According to Bloomberg’s calculations, 37,700 crores. Hindustan Zinc, a Vedanta unit, declares a fourth dividend of approximately 11,000 crores the week before.

About 70% of the Mumbai-listed company that mines and exports commodities like zinc, iron ore, and aluminum is owned by London-based Vedanta Resources.

On Wednesday, Vedanta shares were up 2.83 percent. 282 on the NSE per share.

Know your inner investor: Are you a strong investor or do you sleep poorly when it comes to investments? Let’s define your approach to investing.


Live 02help has all of the latest business news, market news, breaking news events, and news updates. To receive daily market updates, download the o2help News App.



Markets end FY23 in style; Sensex Nifty rally nearly 2% on firm global trends

Market, The final day of the fiscal year 2022-23 saw gains for benchmark indices, with a gain of nearly 2% on Friday, extending gains for...

Day trading guide for today: 6 stocks to buy or sell on Friday — 31st March

Trading, Day trading guide for today: Indian shares gained on Wednesday as global markets' increased risk appetite was aided by easing in the banking industry....

Financial, IT stocks aid Indian shares snap three-month losing streak

Financial, By Bharat Rajeshwaran BENGALURU (Reuters) - Indian shares rose on Friday, supported by a higher weighting of financial stocks and information technology (IT) stocks,...


Please enter your comment!
Please enter your name here


Most Popular

Trading the Inside Bar Pattern on Pocket Option Platform

Inside Bar Pattern Introduction Price movement on a chart is examined in price action trading. You may use candlesticks to predict where prices will move...

“Unlocking the Secrets: 4 Tricks of Successful Traders on Pocket Option Platform”

For a year, I have been trading on the Pocket Option platform. I sometimes succeed and sometimes fail. However, I was confident that if...

Identifying Mistakes That Lead to Losses on Pocket Option

Why do people lose their money when trading binary options New traders frequently take a significant financial risk while trading binary options. As a result,...

Weekly Income Plan on Pocket Option Platform”

Get weekly returns on Pocket Option It turned out that October was a terrific month for me. I am still able to generate money every...

Recent Comments