Vedanta shares jump after announcement of ₹11 per share interim dividend

Stock market today: Vedanta shares witnessed strong buying interest during early morning deals on Tuesday. Vedanta share price today opened upside and went on to hit intraday high of ₹266.40 apiece on NSE, logging over 2 per cent rise within few minutes of stock market's opening bell today. By opening higher on Tuesday, Vedanta share price extended its rally for fifth straight session on Tuesday. In last five sessions, Vedanta shares have rallied from ₹246.65 to ₹266.40 apiece levels, ascending around 8 per cent in this time.

Acording to stock market experts, Vedanta shares are rising due to interim dividend buzz. The metal company has declared ₹11 per share interim dividend yesterday and hence we are witnessing some buying interst in the stock as its record date is close. They said that the stock may witness some more buying interest but the rally in Vedanta shares are short lived.

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Why Vedanta shares are rising?

On why Vedanta shares are rising, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Vedanta shares are rising on short term trigger, which is interim dividend payment. The company is still under stress and it is facing various challenges on fund raising front. So, the current rally is completely driven by the interim dividend buzz. People are buying Vedanta because it is one of the dividend paying stocks on Dalal Street and its record date is fast approaching."

On outlook for Vedanta shares, Sumeet Bagadia, Executive Director at Choice Broking said, "Vedanta shares are looking range bound on chart pattern. Currently, the stock is facing resistance at ₹265 whereas it has support placed at ₹255 apiece levels. The stock may become buyllish once it breaches ₹265 hurdle decisively. Till then Vedanta shareholders are advised to hold the scrip with trailing stop loss at ₹255 while fresh investors should wait for the breakage of current hurdle."

Vedanta dividend 2023

Informing Indian stock market exchanges about interim dividend approval Vedanta Ltd said, "In continuation to our Letter No. VEDL/Sec./SE/23-24/163 dated December 13, 2023 and pursuant to Regulation 30 of Listing Regulations, we wish to inform you that the Board of Directors of the Company, in its meeting held today i.e., on Monday, December 18, 2023, has approved the Second Interim Dividend of ₹11/- per equity share i.e. 1100% on face value of ₹1/- per equity share for the Financial Year 2023-24 amounting to ₹4,089 Crores."

Vedanta dividend record date

"The record date for the purpose of payment of dividend shall be Wednesday, December 27, 2023 and the interim dividend shall be duly paid within the stipulated timelines as prescribed under law," Vedanta concluded.

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