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Vedanta to Pay $392 Million Dividend to Trim Parent’s Debt Pile

The Vedanta Resources Ltd. booth on the opening day of the Investing in African Mining Indaba in Cape Town, South Africa, on Monday, May 9, 2022. Mining executives, investors and government ministers are meeting in Cape Town for the African Mining Indaba, the continent’s biggest gathering of one of its most vital industries. Photographer: Dwayne Senior/Bloomberg (Dwayne Senior/Bloomberg)

(Bloomberg) -- Indian tycoon Anil Agarwal’s Vedanta Ltd. will pay 33.2 billion rupees ($392 million) in interim dividend, aiding efforts to reduce debt at its London-listed parent.

Vedanta’s board approved a payout of 8.5 rupees a share, according to an after-market filing to stock exchanges Monday. With the latest offer, the company’s dividends have reached to about 170 billion rupees for the financial year through March 2025, according to data compiled by Bloomberg. 

The Mumbai-based miner reported its highest earnings in nine quarters for the three months ended September, driven by an increase in prices of metals. Growing earnings bode well for the group’s expansion plans ranging from zinc to aluminum businesses. They also ease debt repayment concerns at the parent Vedanta Resources Ltd. 

The London-based parent has cut its debt by more than $4 billion in the past two years, and aims to repay $3 billion more over the next three years. 

Shares of Vedanta Ltd. ended 1.2% lower before the announcement in Mumbai, sliding from their record close last week. 

--With assistance from Rajesh Kumar Singh.

©2024 Bloomberg L.P.