Vedanta shares in focus on announcing Rs 16 interim dividend amid legal hurdles – News Air Insight

Spread the love


Vedanta, a prominent player in the Indian metals and mining sector, shares are likely to be in focus on Friday after the announcement of a second interim dividend of Rs 16 per share for the financial year FY26.

The total payout from this dividend is Rs 6,256 crore, and the record date has been set for August 27, 2025. This follows the company’s first interim dividend of Rs 7 per share, which was declared on June 18, 2025, amounting to a total payout of Rs 2,737 crore.

Over the past 12 months, Vedanta has rewarded its shareholders with a generous total dividend of Rs 35.5 per share, making it the highest dividend-paying stock in the Indian market, with an impressive 8% dividend yield.

The announcement, which was made after market hours on Thursday, is seen as part of Vedanta’s continued commitment to returning value to its investors.

Vedanta’s stock closed at Rs 447.10 on the National Stock Exchange (NSE) on the day of the announcement, marking an uptick of Rs 1.60 or 0.36% over the previous closing price.


Vedanta’s operations have been under scrutiny in recent months due to regulatory and legal hurdles. The National Company Law Tribunal (NCLT) recently deferred its hearing on Vedanta’s demerger plan to September 17, 2025, after raising concerns about the company’s disclosures and the demerger scheme.This delay follows objections from the Centre over the alleged concealment of key details related to the plan, a move that has placed the company under additional scrutiny.Furthermore, the Securities and Exchange Board of India (SEBI) issued a warning to Vedanta after the company altered its demerger scheme despite having secured prior approvals from both stock exchanges and the regulator. This alteration was deemed a serious breach, further intensifying the company’s regulatory challenges.On the legal front, Vedanta’s struggles continue as the Supreme Court of India dismissed the company’s plea for additional compensation related to its Punjab-based Talwandi Sabo Power project. The company had challenged the withdrawal of ‘deemed export’ benefits, seeking higher compensation.

However, the apex court upheld the ruling of the Appellate Tribunal for Electricity (APTEL), which stated that Talwandi Sabo was never legitimately entitled to such benefits. This ruling effectively closed the door on any further financial relief from the project, marking another setback for the company.

Also read: Is Rs 4 crore enough for retirement corpus? Gurmeet Chadha gives simple calculation metric

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *