Vedanta shares experienced a notable rise of 2% in early trading on 3rd September 2024, reaching ₹465.45 on the National Stock Exchange (NSE). This surge followed the company’s announcement of its third interim dividend of ₹20 per share, sparking interest among investors looking to buy shares online.
Dividend details and financial impact
The Board of Directors approved the ₹20 interim dividend during their meeting on 2nd September 2024. This dividend, amounting to ₹7,821 crore for the financial year 2024-25, is based on a face value of ₹1 per equity share. The announcement is expected to attract more investors who are keen to buy shares online, given the lucrative returns.
Earlier in the fiscal year, Vedanta declared a second interim dividend of ₹4 per share in July, totalling ₹1,564 crore, and a first interim dividend of ₹11 per share in May, amounting to ₹4,089 crore.
Brokerage ratings and debt overview
Despite the positive movement, international brokerage Citi has maintained its ‘buy’ rating on Vedanta, setting a target price of ₹430 per share. This suggests a minor downside of approximately 7%.
Vedanta’s financial health remains a point of interest for potential investors. As of June 2024, the company’s net debt, excluding Hindustan Zinc, stood at approximately ₹61,000 crore. Since then, Vedanta has raised nearly ₹8,500 crore through a Qualified Institutional Placement (QIP), issuing 193.2 million shares at ₹440 per share.
Strategic restructuring and future prospects
In a move to unlock value and attract significant investments, Vedanta announced plans to demerge its business units into independent, pure-play companies in September of the previous year. This restructuring is expected to facilitate growth in its various business segments, including aluminium, oil & gas, power, steel, ferrous materials, and base metals. Such strategic decisions may increase investor confidence, driving more individuals to buy shares online.
Vedanta’s stock performance over the past year
Vedanta shares have demonstrated robust performance over the past year. In the last month alone, the stock delivered a positive return of 12.16%. Over the past six months, the shares exhibited strong momentum, with returns of 67.63%. Year-to-date figures further highlight the stock’s bullish trend, with an impressive growth of 80.05%. Over a longer horizon, Vedanta shares have shown consistent strength, offering returns of over 91.50% in the last year. This strong performance might attract investors looking to buy shares online as part of their investment strategy.
Final thoughts
The recent surge in Vedanta shares following the approval of the ₹20 interim dividend underscores the company’s robust financial health and strategic planning. With consistent dividend payouts, positive brokerage ratings, and a promising restructuring plan, Vedanta continues to be an attractive option for those looking to buy shares online.
For android only