- Saturday, July 27, 2024
The company declared its first interim dividend of Rs 11 per equity share for the 2024-25 financial year, totaling Rs 4,089 crore.
By: Shubham Ghosh
VEDANTA Ltd on Thursday (16) announced that its board has approved a fundraise of up to Rs 8,500 crore (£8,043.4 million). The metals-to-oil conglomerate led by Anil Agarwal said its committee of directors will determine the structure of the fundraising, where the proposals may include the issue of equities and other financial instruments, Business Today reported.
Additionally, the company declared its first interim dividend of Rs 11 (£0.10) per equity share for the 2024-25 financial year, totaling Rs 4,089 crore (386.4 million).
“The record date for the purpose of payment of dividend shall be Saturday, May 25, 2024, and the interim dividend shall be duly paid within the stipulated timelines as prescribed under law,” Vedanta stated, according to the report.
This marks the second time Vedanta is raising funds in the current fiscal year. In April, it announced plans to raise up to Rs 2,500 crore through debt securities.
The company is presently undergoing a process to split into six separate units.
As of March 31 this year, the company’s net debt increased by approximately 25 percent from the previous year, reaching Rs 56,338 crore (£5.32 billion). Additionally, its full-year cash and cash equivalents dropped to Rs 2,812 crore (£266 million) from Rs 6,926 crore (£655 million) a year ago.
The announcements were made after market hours on Thursday.
According to Nuvama Institutional Equities, rising commodity prices enhance cash flows and could lead to an increase in valuation multiple. They suggested that the company’s debt overhang should significantly diminish. Besides, they noted that Vedanta’s debt likely peaked out in FY24, the report added.
