Vedanta shares to turn ex-dividend next week; to pay 1,950% dividend to shareholders
2 min read . Updated: 23 Jul 2022, 10:01 PM IST
Premium- The company has announced a 1,950% dividend for the fiscal year FY23. Next week, Vedanta will determine eligible shareholders for the dividend and later carry out the payment process.
Vedanta shares will turn ex-dividend next week ahead of the record date. The company has announced a 1,950% dividend for the fiscal year FY23. Next week, Vedanta will determine eligible shareholders for the dividend and later carry out the payment process. For receiving dividends, shareholders must ensure to have an updated and active bank account linked with their Demat account.
Vedanta has fixed the record date for the purpose of payment of dividend, on Wednesday, July 27, 2022. The interim dividend will be paid within stipulated timelines as prescribed under law.
Earlier this week, Vedanta board of directors approved a second interim dividend of ₹19.50 per equity share i.e. 1950% on the face value of Re 1 per share for the financial year FY23 aggregating to ₹7,250 crore.
Considering the record date of July 27, the Vedanta shares will turn ex-dividend on July 26.
Dividends are a form of incentives that shareholders receive on holding shares of a profitable company. Generally, when a company earns profit they share a portion of the surplus with shareholders who have a portion of their stocks and that is called a "dividend".
Meanwhile, the ex-dividend date for a stock is the business day before the record date of declaring eligible shareholders for the payout. This also means that investors who buy the stock on the ex-dividend date or later will not be eligible for dividends announced for a particular fiscal by the company.
As per the BSE FAQs, the company provides the facility of direct credit of the Dividend to the member’s bank account. Listing Regulations also mandate Companies to credit the Dividend to the members electronically. Members are therefore urged to avail of this facility to ensure safe and speedy credit of their dividend into their Bank account.
Earlier, in April this year, Vedanta had announced its first interim dividend of ₹31.5 per equity share i.e. 3,150% on the face value of Re 1 per share for FY23 amounting to ₹11,710 crore.
In FY22, the company had declared a total dividend of ₹45 per equity share having a face value of Re 1 each. The company's payment of dividends to equity holders in the fiscal was to the tune of ₹16,681 crore compared to ₹3,519 crore in FY21.
On BSE, Vedanta shares stood at ₹258.45 apiece up by ₹3.65 or 1.43%. Its market cap is around ₹96,070.95 crore.
