Mumbai, India – Vedanta Chairman Anil Agarwal has reiterated the company's unwavering commitment to its shareholders, emphasizing the importance of consistent dividend payments. Agarwal made these remarks at the Bombay Stock Exchange (BSE) during the official listing ceremony of four newly demerged entities from the Vedanta group.
Commitment to Shareholder Value and Dividends
During his address, Agarwal highlighted that Vedanta is deeply conscious of its dividend policy and aims to remain a strong dividend-paying company while simultaneously creating long-term value for all investors, regardless of their shareholding size. He underscored the company's dedication to prioritizing shareholder interests, noting a 300% total shareholder return and a 55% cumulative dividend yield over the past five years.
"We are a dividend-paying company, and should always remain so. This is my prayer to God... besides that, we also create value. Even the smallest of shareholders is very important for us," Agarwal stated.
Demerger and Listing of New Entities
The ceremony marked a significant milestone for the Vedanta group, with shares of four new companies commencing trading on Indian stock exchanges from Monday, 10 am. These entities are:
- Vedanta Aluminium Metal (VAML)
- Vedanta Oil & Gas (VOGL)
- Vedanta Power
- Vedanta Iron & Steel (VISL)
These new listings are in addition to the already public Vedanta Ltd. The successful completion of the demerger process is anticipated to unlock substantial value for shareholders. Each newly listed company will now operate independently, allowing them to pursue their specific business plans, raise capital as needed, and provide investors with opportunities to invest directly in particular sectors within the Vedanta ecosystem.
Strategic Vision for Growth
The demerger strategy is designed to enhance focus and agility for each business vertical, potentially leading to improved operational efficiencies and growth trajectories. The move is expected to empower each entity to tailor its strategies to specific market dynamics, ultimately benefiting shareholders through clearer valuations and focused investment opportunities.