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Vedanta Ltd to Pay $907mn in Dividends Helping Parent VRL
July 20, 2022
Vedanta Ltd approved a second interim dividend of INR 19.5/share ($0.24) or INR 72.5bn ($907mn) to shareholders. This is after the company announced its first interim dividend for FY 2023 of INR 31 ($0.39) or INR 117.1bn ($1.47bn) in April this year. These moves will help its international holding company and parent Vedanta Resources Ltd (VRL) pay their debt, optimize liquidity and reduce refinancing risk. As per Bloomberg, VRL, which holds ~70% of Vedanta Ltd., received dividend payments of $1.5bn in the previous financial year and $932mn in the current financial year so far. These dividend payouts serve as important support to VRL to deleverage its balance sheet and reduce its debt burden by $4bn as envisaged over the next three years. It is noteworthy that these heavy dividends are being paid out even as Vedanta Ltd plans has major capital investments plans worth as much as $2bn for FY 2023.
VRL’s dollar bonds were trading down with its 7.125% 2023s up over 0.24 points to 79.38 cents to the dollar.
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