Billionaire Anil Agarwal-backed Vedanta Ltd stock price will be in focus this week as its board of directors will be considering the proposal of the first interim dividend for the financial year 2025-2026. Vedanta recently also announced its fundraising plan of up to Rs 5,000 crore ahead of its demerger programme, which is in the ratio of 5:1.
Vedanta Ltd Share Price:
Last week, on June 13, Vedanta stock stood at Rs 458.35 apiece, down by 0.5% on NSE, with a market cap of Rs 1,79,232.64 crore. Vedanta is among the top metal stocks. Despite the slight correction, Vedanta stock ended the weekly trading sessions of June 9-13 on a positive note with a 1.3% upside. In a month, Vedanta stock is up by 3.9%, and YTD performance is also higher by 3.13% so far.
Vedanta Interim Dividend:
As per the regulatory filing, Vedanta’s board of directors are scheduled to meet on Wednesday, June 18, 2025, to consider and approve the First Interim Dividend on equity shares, if any, for the Financial Year 2025-26.
For this, Vedanta has fixed the record date to determine the entitlement of the equity shareholders for the said dividend, if declared, on Tuesday, June 24, 2025.
Vedanta is among the leading dividend-paying stocks, with its dividend yield of 7.09% being the highest in both large-caps and metal stocks basket. In the past 12 months, Vedanta stock has delivered a whopping Rs 32.50 per share dividend.
Vedanta Fundraising:
Vedanta has received approval for the onvertible Debentures of face value of Rs 1,00,000 each, aggregating to Rs 2,400 Crore (“Series 1 Debentures”), 1,75,000 Indian Rupees (INR) Denominated Unsecured, Redeemable, Rated, Listed, Non-Convertible Debentures of face value of Rs 1,00,000 each, aggregating to Rs 1,750 Crores (“Series 2 Debentures”), and 85,000 Indian Rupees (INR) Denominated Unsecured, Redeemable, Rated, Listed, Non-Convertible Debentures of face value of Rs 1,00,000 each, aggregating to Rs 850 Crores (“Series 3 Debentures”).
Together, these series have a total issue size aggregating to Rs 5,000 Crore on a private placement.
Vedanta Demerger:
Vedanta’s demerger of its businesses is at the centre stage of unlocking key value in the entire Vedanta Group. Recently, the company received big relief when the National Company Law Appellate Tribunal (NCLAT) declared an interim stay order on the order passed by the Hon’ble NCLT, Mumbai dated March 04, 2025, to the extent it relates to “the rejection of the Scheme”.
Earlier, this year, Vedanta received shareholders’ approval for a scheme of arrangement between Vedanta Limited (Demerged Company or Company) Vedanta Aluminium Metal Limited (Resulting Company 1) Talwandi Sabo Power Limited (Resulting Company 2) and Malco Energy Limited (Resulting Company 3) Vedanta Iron and Steel Limited (Resulting Company 4) and their respective shareholders and creditors under Sections 230-232 and other applicable provisions of the Companies Act, 2013 (Scheme).
The demerger is of Vedanta and metals, power, aluminium, and oil and gas businesses to unlock potential value. After the exercise, six independent verticals – Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Limited – will be created.
Under the demerger agreement, every eligible shareholder of Vedanta will get one share each in the five newly listed companies, against their 1 existing share in Vedanta.
BUY/SELL Vedanta Stock?
According to Trendlyne data, the consensus recommendation from 15 analysts for Vedanta Ltd. is BUY. Of the total, 8 analysts have recommended ‘STRONG BUY’ and 1 analyst said ‘BUY’ on Vedanta. EPS is expected to grow by 7.6% in FY26. The average target price is Rs 511.60, hinting at a nearly 12% potential upside ahead.
Last month, ICICI Direct’s note said, “We have a positive view on Vedanta amidst its market leadership in the aluminium and zinc segments, healthy capacity expansion across divisions, controlled leverage on B/S, return ratios >20% & attractive dividend yield of ~9%. We assign a BUY rating with an SOTP-based target price of ₹600.”
With a focus on value-added products, the analysts expect Vedanta’s metal premiums to inch upwards in this domain from FY26E. Thus, we project its aluminium division revenue to grow at 10% CAGR over FY25-27E, with EBITDA/tonne to inch up to US$1,100 by FY27E vs. US$ 870 in FY25. EBITDA CAGR at this segment is seen at 23% over FY25-27E.
Other growth drivers at VEDL include power space i.e. ~2,200 MW thermal plants (Meenakshi & Athena), iron ore capacity expansion to 30 MTPA, and doubling steel capacity to 3.5 MT by FY27E. Overall, VEDL is poised for revenue and EBITDA CAGRs of 11% and 17% over FY25-27E, as per the brokerage.
It also said, dividend payouts have also been high at VEDL in the past and with strong FCFF generation forward dividend yield is seen sustaining at ~9% mark. Importantly, the planned demerger of its five businesses aims to streamline corporate structure, and unlocking value potential for its shareholders post demerger.