BENGALURU (Reuters) – India’s Vedanta Ltd on Monday declared a second interim dividend of 11 rupees per share for fiscal 2024, amounting to 40.89 billion rupees (about $492 million).
The dividend comes at a time when UK-based parent Vedanta Resources grapples with multiple rating downgrades stemming from worries over outstanding dues, including a $4.5 billion payment due by fiscal 2025, and negotiations for extending the maturities of some of its bonds.
Vedanta Resources holds a 63.7% stake in Vedanta Ltd and will be the major benefactor of the dividend payout.
This is the second dividend for Vedanta Resources from Indian companies in December. Hindustan Zinc, in which Vedanta Ltd holds a 64.9% stake, also declared a second interim dividend on Dec. 6, amounting to 25.35 billion rupees.
Group Chairman Anil Agarwal told CNBC-TV18 in October that Vedanta had lined up finances of about $1 billion in January and $500-$600 million in August to pay the dues.
The group has made several bids to trim debt, including an unsuccessful attempt to take Vedanta Ltd private in 2020 and a deal for Hindustan Zinc to buy some of Vedanta Ltd’s zinc assets that the Indian government contested.
In September, Vedanta Ltd launched a sweeping overhaul, carving up the metals-to-oil conglomerate into six separate businesses.
Vedanta Ltd shares closed 1.4% higher on Monday. They have fallen more than 15% so far this year.
($1 = 83.0529 Indian rupees)
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Janane Venkatraman)
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