Shares of Vedanta ticked up sharply as markets opened on Tuesday, but settled to trade flat later in the day after it announced the third interim dividend this year.
What Happened: Vedanta’s board of directors have approved a third interim dividend of ₹20 per equity share on a face value of ₹1 per equity share, the company said in a press release on Monday. A total of ₹7,821 crores will be paid out to the investors.
The record date for the payment of the dividend has been set on September 10, the company added in the statement.
Earlier this year, the Anil Agarwal-owned mining conglomerate paid out dividends of ₹11 and ₹4 in May and August respectively. In total, Vedanta has paid out a total of ₹35 in dividends so far in 2024.
Brokerage Views: International brokerage firm Citi has a “buy” call on the stock but holds a target price of ₹430, which represents a downside of about 8% from its current market price.
As of June 2024, the firm’s net debt, excluding Hindustan Zinc, stands at around ₹61,000 crore. Since then, Vedanta has raised nearly ₹8,500 crore through a QIP, issuing 19.32 crore shares at ₹440 per share, according to the brokerage.
Price Action: Vedanta was trading almost flat on Tuesday. It was up 0.59% at ₹466.
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