Vedanta Ltd to Mull Third Interim Dividend Amid Strong Financial Performance

Vedanta Ltd, led by Anil Agarwal, is set to discuss and potentially approve its third interim dividend for the 2024-25 financial year in a board meeting next week. The company has created a Rs 30,000 crore war chest for deleveraging and growth, following a series of recent financial initiatives and strong quarterly performance.

Vedanta Ltd, under the leadership of Anil Agarwal, announced on Wednesday that its board will convene next week to consider and potentially approve the third interim dividend for the ongoing financial year.

In a filing to the BSE, Vedanta disclosed that the board of directors is scheduled to meet on Monday to discuss this possibility. Last month, the company had approved the second interim dividend for 2024-25.

In July, Vedanta had sanctioned a second interim dividend of Rs 4 per share for the current fiscal year. Sources indicate that the company has assembled a Rs 30,000 crore war chest through recent financial maneuvers including a qualified institutional placement (QIP), offer for sale (OFS), and dividend initiatives.

The proceeds amounting to Rs 8,500 crore from the QIP, Rs 3,200 crore from HZL's OFS, and Rs 5,100 crore from the second interim dividend, along with Rs 13,000 crore in existing cash reserves, will contribute to this strategic fund. Vedanta continues to exhibit strong financial performance, with profit after tax soaring by 54% year-on-year and more than doubling on a quarter-on-quarter basis to Rs 5,095 crore for the first quarter.

(With inputs from agencies.)