Vedanta Recommends Rs 11/Share Dividend, Approves Rs 8,500 Cr Fundraise; Shares Rise 68% YTD

Billionaire Anil Agarwal's Vedanta Ltd today recommended first interim dividend of Rs 11/- per equity share on face value of Re 1/- per equity share for the financial year 2024-25. The company also approved fundraising of an aggregate amount of Rs 8,500 on May 16, 2024. However, despite these announcement Vedanta Ltd share traded in red and settled with the decline of 0.96% to Rs 433.20 per share. Vedanta share offered attractive return of 63% in last 3-months and 81% in last 6-months. The market capitalisation of the company stood at Rs 1,61,028.96 crore. More details below:

Vedanta Ltd Recommends Dividend: As per the BSE filing of the company dated May 16, 2024, "First Interim Dividend of Rs 11/- per equity share on face value of Re 1/- per equity share for the Financial Year 2024-25 amounting to Rs 4,089 Crores."
Vedanta Fixes Record Date For Dividend: The record date for the purpose of determining the entitlement of the equity shareholders for the said dividend, if declared, is being fixed as Saturday, May 25, 2024."

Vedanta Approves Fundraise: The BSE filing added, "Subject to the approval of the shareholders of the Company and subject to such regulatory/statutory approvals as may be required, raising of funds, inter alia, by issue of equity shares and/or any financial instrument(s) and/or security convertible into equity shares, combination of such securities by way of one or more public and/or private offering(s) and/or further public offering and/or qualified institutions placement(s) and/or preferential allotment(s) and/or rights offering or american depository receipts / global depository receipts and/or foreign currency convertible bonds or any combination thereof or any other method under applicable laws, for an aggregate consideration of up to Rs 8,500 Crores."

Vedanta Q4: The company declared a 27% fall in Q4 profit ended March 31, 2024 amid soaring finance expenses and sluggish metals prices like zinc, copper, and aluminium. The large cap giant's net profit declined to Rs 1369 crore for Q4 ended March 31, 2024 as against Rs 1881 crore net profit reported in the corresponding quarter of last year. It announced a fall of 6% in its revenue from operations to Rs 34,937 crore for March quarter and remained slightly changed, sequentially.

It stated that short-term and long-term demand remained strong in India. "The demand is expected to remain strong in upcoming years due to thriving infrastructure, manufacturing, automobile and EV/renewable sectors," said Vedanta. Meanwhile, consolidated EBITDA slipped 4% to Rs 8,969 crore for the quarter under review from an year ago.

Should You Buy Vedanta Limited Share? Nuvama has upgraded the target price for Vedanta share to Rs 542 from Rs 394 earlier despite decline in Q4 net profit. "We are jacking up Vedanta's FY25/26 Ebitda estimates by 18%/23% factoring in higher commodity prices and lower CoP in aluminium. We believe the company's debt peaked out in FY24. The aforesaid upward earnings revision lifts the target price to Rs 542 (earlier Rs 394); reiterate 'BUY'," brokerage firm Nuvama said.

Antique Stock Broking also upgraded the target price of Vedanta share despite decline in Q4 performance. The analyst at Antique Stock Broking recommended buy call with target price of Rs 411 from Rs 318 issued earlier. Antique factored in 6% higher aluminum and 9% higher zinc prices, which raised its FY25/FY26 Ebitda estimates by 11%/ 15%.

How To Become Eligible For Vedanta Dividend? Record date remains crucial role in determining eligibility of shareholders for receiving dividend. Individuals whose name appear in company's shareholders record as on the record date will become eligible to earn dividend announced by the company. Record date is the particular day on which a company confirms the list of shareholders eligible for its dividend distribution. Vedanta Ltd fixed May 25 as the record date for first interim dividend.

Vedanta Limited Share Performance: The 52-week high price of Vedanta Limited share on BSE is Rs 448.95 apiece (as on 15/05/2024) and 52-week low price is Rs 207.85 per share (as on 28/09/2023). Vedanta shares zoomed, 9.8% in last 1-week, 15% in last 1-month, gained 68% year-to-date, and rallied 55% in last 1-year. In last 2-years, Vedanta shares jumped 51%, soared 59% in last 3-years, and surged 165% in last 5-years.

Vedanta Dividend History: Vedanta declared 42 dividends since July 23, 2001. In last 1-year, Vedanta declared an equity dividend amounting to Rs 29.50/share. At current share price of Rs 433.20, Vedanta gives an eye-popping dividend yield of 6.81%.

Disclaimer: The stock has been picked from the brokerage report of Nomura And Antique Stock Broking. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.