New Delhi: Vedanta is a company controlled by billionaire Anil Agarwal. It was only last month that the company sought permission to delist from the stock market.
But, it did not get proper approval. Meanwhile, Vedanta announced a dividend of Rs 9.5 per share.
The company said in a statement to the stock exchange that it would spend Rs 3,500 crore on the dividend.
The company said it would pay the dividend on October 31.
Just a few months ago, Anil Agarwal, the company’s chairman, announced that he was leaving the Indian stock market to become a private company. Vedanta, India’s leading mining company, also has plants in Thoothukudi, including Sterlite. Vedanta holds 50.1% of the shares currently held by its parent company, Vedanta Resources. The remaining 49.9% of the shares are held by investors in the public market.
It is noteworthy that in the past 2018, Vedanta Resources has completely exited the London Stock Exchange. It is also worth noting that Vedanta was the first Indian company to be listed on the London Stock Exchange. In this situation, Vedanta is currently planning to exit the Indian stock market completely.
In this context, Vedanta has announced that it will launch an auction on October 5 to acquire the shares. It has also announced that it can be withdrawn until October 8. The decision was announced by Vedanta last May, but has now been approved.
As a result, 49.49% or 183.98 crore shares held by public shareholders are to be repurchased. Vedanta has set a price target of Rs 87.50 per share. Companies listed on the stock exchange may apply to leave the market for a number of reasons. If all these rules are followed, SEBI will allow the company to go out. This is what is currently being approved.
But it is in this context that Vedanta has declared a dividend.