Vedanta Ltd has announced that its board of directors is set to convene next week to deliberate and potentially approve the third interim dividend for the current financial year. This meeting is scheduled for Monday, during which the board will review the proposal for this interim dividend on equity shares for the fiscal year 2024-25, as stated in a filing to the Bombay Stock Exchange (BSE).
The company had previously sanctioned the second interim dividend of ₹4 per share last month for the fiscal year 2024-25. In recent developments, Vedanta Ltd has amassed a substantial financial reserve of ₹30,000 crore, bolstered by recent capital raises including a Qualified Institutional Placement (QIP), an Offer for Sale (OFS), and dividend collections.
Sources have indicated that this financial arsenal is intended to further the company’s efforts in reducing debt and fueling future growth. The funds accumulated from these initiatives include ₹8,500 crore from the QIP, ₹3,200 crore from the OFS of Hindustan Zinc Limited (HZL), and an additional ₹5,100 crore from the second interim dividend.
When combined with the company’s existing cash reserves of ₹13,000 crore, this total amount is expected to culminate in a robust ₹30,000-crore financial buffer. Vedanta has shown impressive financial performance recently, as evidenced by its quarterly results. For the first quarter of the current fiscal year, the company reported a significant increase in profit after tax, which surged by 54% compared to the same period last year and more than doubled on a quarter-on-quarter basis, reaching ₹5,095 crore.
This remarkable growth underscores the company’s ongoing success and solid financial standing, highlighting its strategic initiatives and strong operational performance. Overall, the forthcoming board meeting will be crucial in determining the next steps in Vedanta Ltd’s dividend policy and financial strategy.
The company’s recent achievements and substantial financial reserves position it well for continued growth and stability in the competitive market landscape. As Vedanta continues to execute its strategic plans, the results of the board’s upcoming decision will be closely watched by investors and industry analysts alike.
Vedanta Ltd, led by Anil Agarwal, is a prominent global natural resources company engaged in the extraction and production of metals, minerals, and oil & gas. With a diverse portfolio including zinc, lead, silver, copper, and iron ore, Vedanta focuses on sustainable growth and significant value creation. The company is renowned for its robust financial performance and strategic initiatives.
