Chemical Stock Hits New 52-Week High On Deal With Metal Giant Vedanta: 1100% Dividend Payout Soon

Commodity chemicals stock price, Gujarat Alkalies touched a new 52-week high on Tuesday after signing a memorandum of understanding (MoU) with billionaire Anil Agarwal's Vedanta for exploring business opportunities. Vedanta which is the highest dividend yield stock current on the Indian market, ended higher as well.

As per the regulatory filing on January 2nd, Vedanta (Aluminium Business) has signed a Memorandum of Understanding (MoU) with Gujarat Alkalies and Chemicals Ltd (GACL), for exploring various business opportunities in the areas of Caustic-Chlorine and other allied businesses.

Through the MoU, the companies aim to recognize the potential of adding value to the businesses of both Vedanta Aluminium and GACL, by adopting a collaborative approach based on their complementary skills, strengths, and common business interests to achieve synergy.

Accordingly, the duo desires to explore opportunities for cooperation in greater detail so that resources can be pooled together in a mutually beneficial manner. This is also in line with Vedanta Aluminium's efforts towards vertical integration.

With this MoU, both companies have, in principle, agreed to jointly explore business opportunities either in the form of a joint venture project or through contractual arrangements of mutual interest.

On BSE, Gujarat Alkalies' share price touched a new 52-week high of Rs 836.95 apiece before ending at Rs 814.80 apiece, up by 0.40%. The company's market cap is at Rs 5,983.64 crore.

Meanwhile, Vedanta's share ended at Rs 258.05 apiece, up by 0.33% with a market cap of Rs 95,922.26 crore.

In a year, Gujarat Alkalies shares have gained by a single-digit 5.14% on BSE, on the other hand, Vedanta shares have fallen by 19.20%.

In 2023, Gujarat Alkalies paid dividends up to 235.50% amounting to Rs 23.55 per share. While its current dividend yield is at 2.89%.

But Vedanta topped the list of highest dividend yield and best dividend paying stock in 2023, with a dividend payout of 5,150% valuing to Rs 51.50 per share. Its current dividend yield is at 39.32%. Last week, Vedanta stock turned ex-dividend on December 27th for its upcoming second interim dividend payout of Rs 11 per share or 1100%.

Vedanta is a subsidiary of Vedanta Resources Limited, is one of the world's leading natural resources companies spanning across India, South Africa, Namibia, Liberia, UAE, Korea, Taiwan and Japan with significant operations in Aluminium, Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, Nickel, Power & Glass Substrate and foraying into semiconductors and display glass. Vedanta has put in place a comprehensive framework to be the ESG leader in the natural resources sector, is committed to reducing carbon emissions to net zero by 2050 or sooner and aims to spend $5 billion over the next 10 years to accelerate this transition.

Established in 1973, GACL has emerged as one of the largest manufacturers of caustic soda, employing cutting-edge technology, groundbreaking research and development, and strategic diversification. From an initial capacity of 37,425 TPA caustic soda, the organization has enhanced its capacity to 8,52,400 TPA, with manufacturing facilities spread over four complexes, two in Vadodara and two in Dahej. GACL now offers more than 35 products used as raw materials in various industries. By providing quality raw materials used in numerous applications, GACL contributes to the growth of the chemical industry in the country.