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Vedanta approves interim dividend of Rs 9.5 per share

The board of directors of Vedanta has set October 31, 2020, as the record date for payment of dividend; the dividend payout will be Rs 3,500 crore, the company informed

twitter-logoBusinessToday.In | October 24, 2020 | Updated 22:09 IST
Vedanta approves interim dividend of Rs 9.5 per share

Days after a failed attempt to delist from Indian stock exchanges, Vedanta has approved an interim dividend of Rs 9.5 per share. The board of the company approved the first dividend for the financial year 2020-21 in a meeting on Saturday. The dividend payout will be Rs 3,500 crore, Vedanta said in a regulatory filing.

"The Board of Directors of the Company through resolution passed by circulation on Saturday, October 24, 2020, have approved first interim dividend of Rs 9.50 per equity share i.e. 950 per cent on face value of Re 1 per share for the financial year 2020-21 amounting to Rs 3,500 crore," Vedanta told the stock exchanges.

ALSO READ: LIC upset Vedanta's delisting plan; shareholders' demand unaffordable

The record date for payment of dividend is October 31, 2020, the company further said in its statement.

Vedanta shareholders had been dissatisfied with the company for not passing on the dividend it received from Hindustan Zinc. The Vedanta subsidiary had announced an interim dividend of Rs 21.3 per share on October 23 while declaring its quarterly results. This entitles Vedanta, which holds 64.92 per cent stake in Hindustan Zinc, to receive over Rs 5,842 crore in the form of dividend.

ALSO READ: Hindustan Zinc share price gains over 4% on declaring highest dividend in 12 years

On October 10, billionaire Anil Agarwal-led mining company announced that its voluntary delisting offer - to acquire the balance shareholding in subsidiary Vedanta Limited and then delisting it from the stock exchange - had failed at the reverse book building stage. The total number of shares tendered by Vedanta Limited's public shareholders fell 7 per cent short of the mandatory minimum 90 per cent limit for successful delisting.

Earlier this week, global rating agency Moody's Investors Service on Tuesday placed Vedanta Resources' B1 corporate family rating (CFR) under review for downgrade, citing rise in refinancing risk and significant funding needs at the holding company level.

ALSO READ: Moody's puts Vedanta Resources' ratings under review for downgrade

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