1:6 Split, 2,000% Dividend, 15,762 Gains: Mega Metal Stock Vedanta Is Mutual Funds Darling; BUY For Target?

Vedanta stock price has regained previous month's losses to closing the gap towards its 52-week high levels which is above Rs 500 on BSE. Vedanta which recently rewarded investors with massive dividend of 2,000%, is mutual fund houses darling as these investors have showed strong appetite for the stock. Vedanta has also extended its gains to over 49%.

Vedanta turned ex-dividend on September 10, 2024, for a third interim dividend of a whopping Rs 20 per share, having a face value of Re 1 each for FY25.

Earlier, for FY25, the company paid a second interim dividend of 400% worth Rs 4 per share for which it turned ex-dividend on August 8, 2024. The first interim dividend for the fiscal was 1100% worth Rs 11 per share and Vedanta turned ex-dividend on May 24, 2024, for the same.

Among much awaited development in Vedanta is its demerger into six businesses, aka a 1:6 ratio. Vedanta has received approval to demerger metals, power, aluminium, and oil and gas businesses to unlock potential value. After the exercise, six independent verticals - Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Limited - will be created.

As part of the demerger plan, for every share of Vedanta, shareholders will receive one share of each of the five newly listed companies. After the demerger, the businesses of Hindustan Zinc and the electronics business will remain with Vedanta Limited. The company is expecting to complete its demerger by December 2024 end.