Vedanta Opens FY26 with Generous Dividend as Investors Eye Upcoming Demerger Plans

Vedanta Limited, a leading mining and metals conglomerate, on Wednesday, June 18, 2025, announced its first interim dividend for the financial year 2025–26 (FY26), declaring a payout of ₹7 per equity share.

The dividend applies to equity shares having a face value of ₹1 each, with the total outflow estimated at approximately ₹2,737 crore.

Board Approval and Record Date

The decision was approved during a Board of Directors meeting held earlier in the day.

The company, in a filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, confirmed that Tuesday, June 24, 2025, has been fixed as the record date to determine shareholders eligible for this dividend. The payment will be made within the statutory timeline.

“The Board of Directors of Vedanta Limited, at its meeting held on June 18, 2025, has considered and approved the First Interim Dividend of ₹7 per share, amounting to around ₹2,737 crore,” the company said in its filing.

The meeting commenced at 12:30 p.m. IST and concluded at 01:00 p.m. IST. The resolution aligns with the company’s earlier intimation dated June 13, 2025.

Vedanta’s Consistent Shareholder Returns

Vedanta has consistently been one of the top dividend-paying stocks on Dalal Street. Even amidst capital expenditures and an ongoing demerger process, the company remains committed to shareholder value. This interim dividend is yet another demonstration of that commitment.

Significant Financial Impact

The dividend distribution of ₹7 per share will result in a financial outlay of around ₹2,737 crore.

This payout is based on profits earned during the current fiscal period and continues the company’s tradition of rewarding investors with interim dividends ahead of the Annual General Meeting (AGM) and the finalization of year-end accounts.

Important Dates and Payment Process

Shareholders who hold Vedanta Limited shares as of the close of trading on Tuesday, June 24, 2025, will be eligible for the dividend. The interim dividend is expected to be credited to eligible shareholders within the legally mandated period, typically within 30 days of declaration.

Payment will be made through the mode preferred by shareholders, including direct bank credit or dividend warrants, as per details available with depositories or the company.

Regulatory Communication and Compliance

The announcement was made to the stock exchanges, National Stock Exchange of India Limited (NSE) and BSE Limited (Scrip Codes: NSE: VEDL, BSE: 500295).

The disclosure was signed by Prerna Halwasiya, Company Secretary and Compliance Officer, and ensures adherence to SEBI’s disclosure norms regarding price-sensitive information.

Additionally, Vedanta has notified the National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) to facilitate dividend payments for shareholders holding shares in demat form.

Stake Sale in Hindustan Zinc Ltd

Vedanta also confirmed selling a 1.6 per cent stake in Hindustan Zinc Ltd (HZL) through block deals, raising ₹3,028 crore.

Earlier in the day, approximately 7.2 crore shares or 1.71 per cent equity changed hands at ₹460.5 per share, amounting to ₹3,323 crore. Vedanta later clarified that 66.7 million shares were sold via an accelerated bookbuild process.

Additional Cash Inflow from HZL Dividend

In addition to proceeds from the stake sale, Vedanta will also receive ₹2,679.54 crore from Hindustan Zinc’s recently announced dividend of ₹10 per share.

These dual inflows will bolster Vedanta’s liquidity and support its deleveraging and restructuring efforts.