Vedanta sets October 14 record date for first interim dividend; shares rise nearly 3%
Vedanta has fixed October 14 as the record date for its first interim dividend, with the final announcement due at an October 8 board meeting.
Vedanta, the company led by Anil Agarwal, has given investors important news. The company announced the record date for its first interim dividend, after which its shares jumped nearly 3% on the stock market. The demerger is said to be the main reason for the rise.
Vedanta's management has announced the first interim dividend for the coming financial year. October 14 has been fixed as the record date for the dividend. However, the final announcement will be made at a meeting of the board of directors on October 8.
Vedanta has been split into five independent companies, and this will be the first dividend since then. There is therefore considerable interest in the company and the dividend in the market and among investors. As soon as the dividend was announced, investors increased their buying and the share rose sharply.
According to market experts and financial analysts, Vedanta's long tradition of paying large dividends to investors may continue, though the manner of payment could change somewhat. The company's business is now divided among five independent companies, so each company will have its own profit and cash flow.
Experts say that dividends from these separated companies will in future depend directly on global commodity prices, such as those of metals, oil and gas. Earlier, Vedanta paid substantial dividends as a single combined company. After the demerger, however, each business will have its own specific needs. The size of the dividend could therefore fluctuate in future.
Investors in Vedanta who want to benefit from the interim dividend must hold the shares in their demat account before the record date. The dividend will be paid only if the name is entered in the company's records.
The company was earlier known as Vedanta Limited and was then split into five companies. Vedanta Limited is the original, existing company and also includes Hindustan Zinc. Vedanta Aluminium Metal Limited looks after the aluminium business, while Vedanta Oil and Gas Limited looks after the oil and gas business. Vedanta Power Limited is for the power business, and Vedanta Iron and Steel Limited is for the iron ore and steel business.
