Vedanta share price: Vedanta gains 3% after Hindustan Zinc’s dividend payout

NEW DELHI: Shares of Vedanta rose nearly 3 per cent in Wednesday’s session after its subsidiary Hindustan Zinc announced a dividend of Rs 21.30 per share on the previous day.

The payout to Vedanta, which holds 64.92 per cent stake in the company as of September 30, will be Rs 5,843 crore. This is a relief for the company which needs cash at this point to pay off its debts.

Share price of Vedanta was up 2.92 per cent to Rs 102.10 on BSE. Hindustan Zinc was also up 2.83 per cent to Rs 229.25.

Meanwhile, a media report citing sources said Anil Agarwal’s natural resources company Vedanta may offer an inter-corporate loan to the Singapore-listed Vedanta Resources Ltd (VRL) to help pay off debt, after its bid to delist from the exchanges failed, said two people aware of the discussions, requesting anonymity.

“The company may also explore the option of bringing in a strategic investor for an equity stake,” Mint quoted its sources.

Hemang Jani, Head – Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services, said any increase in inter company loans will be a negative for Vedanta.

Vedanta Resources has a debt of more than $6.7 billion (about Rs 40,000 crore). The company borrowed $3.15 billion from the market to fund its delisting bid, which failed earlier this month.

Source link

Leave a Comment

© 2020 Daily Dose of Market and Beyond News