New Delhi: Days after its delisting offer failed, Vedanta’s board on Saturday approved a dividend on account of ₹9.50 per share. The registration date for it is October 31.
“The Company’s Board of Directors, through a resolution approved by circulation on Saturday, October 24, 2020, has approved the First Provisional Dividend of ₹ 9.50 per share of capital, that is, 950% of the nominal value of Re. 1 / – per share for the Fiscal Year 2020-21 for the amount of ₹3,500 Crores. The registration date for the payment of dividends is Saturday October 31, 2020. The interim dividend will be paid within the stipulated terms as prescribed by law, “the company said in a statement from the stock exchange.
On October 10, Vedanta Ltd announced that its voluntary delisting offer (to acquire the remaining equity interest in Mumbai-listed Vedanta Ltd, and then delist it from the stock exchange) had failed at the construction stage of the reverse book.
The total number of shares tendered by Vedanta Ltd’s public shareholders fell 7 percent below the mandatory minimum of 90 percent for a successful delisting.
Vedanta’s delisting had failed as public shareholders validly bid for Rs 125.47 million shares, which is less than the minimum number of offering shares that promoters must accept for the delisting offer to be successful. The promoters tried to buy 169.73 million shares or a 47.67% stake held by the public to eliminate the company.
Earlier this week, Vedanta Group’s Hindustan Zinc Ltd (HZL) had declared its highest interim dividend in 12 years in ₹21.3 per share. The record date to pay the dividend is October 28. Hindustan Zinc had paid a dividend greater than ₹30 per share in July 2008.
On Friday, the company’s price on BSE closed 0.04% more in ₹104.50.
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