Vedanta shares go ex-dividend tomorrow; last chance for Rs 8.5 payout

Shares of Vedanta Limited are expected to remain in focus as the company has set December 24 as the record date for its Rs 8.5 per share interim dividend. This means that today is the last day to purchase Vedanta shares in order to be eligible for the dividend.

What does the interim dividend mean for investors?

On December 16, 2024, Vedanta's Board of Directors approved a Fourth Interim Dividend of Rs 8.5 per equity share, amounting to approximately Rs 3,324 crore. The announcement marks the continuation of the company’s aggressive dividend payout strategy. The dividend is based on the face value of Rs 1 per share for the fiscal year 2024-25.

With this payout, Vedanta has already distributed a total of Rs 16,798 crore in dividends for the ongoing financial year. The company had previously declared interim dividends of Rs 11 in May, Rs 4 in August, and Rs 20 in September.

Strong performance amid declining revenue

Vedanta’s strong dividend policy comes on the back of solid financial results. The company reported a profit of Rs 5,603 crore for the September 2024 quarter, marking a significant turnaround from the Rs 915 crore loss reported during the same period last year. However, its revenue from operations declined by 4% YoY, reaching Rs 37,171 crore for Q2 FY2024-25, down from Rs 38,546 crore in the same quarter last year.

Understanding the record date and ex-date

For investors to qualify for the dividend, they must hold Vedanta shares in their demat account by the record date, December 24. This is important because of the T+1 settlement cycle, where purchases made on the ex-date (the date after which the dividend is not applicable) will not be eligible for the payout. The ex-date for this dividend is expected to be December 24, 2024.