Vedanta Declares ₹7 Dividend for FY26, Demerger into 5 Firms on Track

Vedanta has kicked off the financial year FY26 by declaring its first interim dividend of ₹7 per equity share. This amounts to a 700% payout on the face value of ₹1 and adds up to a total distribution of ₹2,737 crore. The announcement was made via an exchange filing on June 18, 2025.

Record Date for Dividend is June 24

To be eligible for this dividend, shareholders must own Vedanta shares on or before the record date, which has been set as Tuesday, June 24, 2025. The company has confirmed that the dividend will be paid within the legally prescribed timelines under Indian corporate law.

Demerger Plan to Create 5 Separate Companies

Along with the dividend news, Vedanta also continues work on its major demerger plan. The company will be split into 5 separate listed entities—Vedanta, Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron and Steel. All four new verticals will be listed independently on NSE and BSE. Existing shareholders will receive one share in each of the new entities for every share held in Vedanta, maintaining a 1:1 ratio.

Vedanta Share Price Performance 

Vedanta share price has shown a mixed trend recently. It declined by 3% over the last 5 trading sessions, while gaining 3% in the past month. Over a 6-month period, the stock has fallen by 7%, though it managed a modest 2% rise year-on-year and is up 3% so far in 2025.

Also Read: Key Corporate Actions This Week: Bajaj Auto, Hindustan Zinc, Tata Power Trading Ex-Date (June 16–20)! 

Vedanta Strong History of Dividend Payouts

The company has a strong record of rewarding shareholders. In 2024, Vedanta paid dividends four times—₹11 in May, ₹4 in August, ₹20 in September, and ₹8.50 in December. This followed large payouts in 2023 and 2022, with total dividends of ₹62.50 and ₹81.50 per share, respectively.

Conclusion

Vedanta’s ₹7 interim dividend and ongoing demerger strategy signal a transformative period for the company. While the dividend offers immediate value to shareholders, the demerger could reshape its business structure and unlock long-term growth potential. Investors should keep a close eye on upcoming regulatory approvals and market movements related to this transition.

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