Discl: Invested and hence pls read as may be biased
Has anyone recived the dividend?
22nd is the date ig.
Dividend received today.
Are they suppose to credit 17.5 Rs per share?
I see they credited less amount. Is anyone seeing less amount credited?
minus 10% TDS should solve the math. hope this helps
Even I got less and I tried doing the math with minus 10% TDS, but it didn’t match. Will wait for credit communication email, that may clarify.
Same here…I was supposed to get 2275 but got 1628.
While considering TDS, previous payments in current year also considered .So if your previous payment was without TDS, they have to deduct the same now.
The mining giant Vedanta Group is grabbing the attention for all the wrong reasons, especially after the Adani Group fiasco has come to the fore. The group’s London-based entity, Vedanta Resources Limited, has a huge pile of debt, including $500 million of loan repayments due on December 31, 2023, and a $1 billion bond due in January 2024.
The highly-leveraged Vedanta Resources has a market capitalisation of $13.23 billion and has been working towards reducing its debt burden. The group has paid back $2 billion of debt and has brought the debt down to $7.7 billion in the last 11 months, but industry onlookers say that may not be enough.
The group needs to raise $2 billion to pay back its scheduled debt repayment later this year. In reaction to the whole development, [Vedanta Ltd]shares have been in the red zone for eight consecutive trading sessions, with a decline of nearly 9 per cent on February 28.
On Tuesday, the stock lost over 8.82 per cent, its biggest fall since September 16, 2022, and hit a five-month low of Rs 262 by 11.20 am.
Vedanta Group’s debt burden
The group’s net debt after adjusting the cash component of $3.5 billion is around $11.8 billion. Last year, Vedanta Resources reduced its debt burden from almost $10 billion to $7.7 billion.
After the listed Vedanta Ltd declared a dividend in January this year, S&P Global Inc recently came out with a report saying that Vedanta Resources is fully funded until March 2023, and its parent and majority shareholder is “highly likely” to meet its obligations until September 2023.
It added that if Vedanta is unable to advance either the aforementioned $2 billion fundraising exercise or the sale of its international zinc assets to [Hindustan Zinc Ltd] in the near future, the company’s credit rating will face immediate strain.
Moreover, the group has debt maturities of about about $15 million between July and September this year, that it has to meet, which means the company is required to raise something around $500 million to meet its debt obligations by June 2023.
Hurdles for Vedanta Group
Earlier, the Vedanta Group announced its deleveraging commitment over the next three years. It has to pay back a long-term debt of $13.9 billion. The Group has $1.2 billion debt due by the second half of 2022-23, $4.1 billion by 2023-24, $3.9 billion by 2024-25, and $4.7 billion by 2025-26 and beyond.
The group’s debt is divided into two parts: Vedanta Resources has about $8 billion and the remaining $7 billion-plus is for Vedanta Ltd.
For this year, Vedanta Resources will have to repay $300 million of inter-company loans and $350 million to two relationship banks by September 2023. Therefore, it needs significant fundraising exercises as the company is left with a mere $500 million, which won’t be enough to repay $500 million in the December quarter and $1 billion in bonds in January 2024.
Vedanta Resources has been looking inwards to get a potential solution to pay off its debt. One such possibility was seen in [Hindustan Zinc Limited], where Agarwal owns 64.92 per cent of India’s largest lead and zinc miner, while 29.54 per cent lies with the Indian government.
Vedanta has been trying to offload some of its mines in South Africa and Namibia to raise around $3 billion over 18 months, with Hindustan Zinc as a potential buyer.
The Centre had sold 26 per cent of HZL to the Vedanta group in 2002. The Vedanta group later acquired 20 per cent from the market, and another 18.92 per cent from the government in November 2003, raising its ownership to 64.92 per cent in HZL.
But the HZL stake sale has got the Centre worried as it could be an expensive deal for the already struggling company. Last week, the Centre opposed Vedanta’s Ltd’s proposal to sell its international zinc assets to HZL for $2.98 billion over concerns about valuation.
The government is planning to take legal action to stop the sale of the Africa-based assets to HZL, in which it holds a 29.54 per cent stake.
“The Centre needs to be convinced as to why this decision is being taken by the management. A greater level of scrutiny is needed in this case,” a finance ministry official told Business Today on Monday.
Since the announcement of the deal in January, fears of a cash wipeout have dragged down Hindustan Zinc’s shares by nearly 15 per cent, the lowest level in a month.
Possible way out
reported that Vedanta Resources might take the help of the Indian public sector banks for its future refinancing given its existing credit line of more than a billion dollars. Banks like the State Bank of India (SBI), Bank of Baroda, Union Bank of India, Axis Bank, Kotak Mahindra Bank, and IndusInd Bank are being considered for the sanctioned amount for Vedanta’s ongoing projects.
The Indian banking institutions have rupee loan exposure of $6.73 billion in the Vedanta Group’s total gross debt of $15.3 billion. In fact, a large proportion of the $8.57 billion is in foreign currency loans.
The purchase of both the businesses (Semicon and Display Glass) are @ 5L each. Semicon includes a 4CR liability also, but still given the potential of this biz the purchase price seems low… Whats the catch?