Vedanta declares fifth interim dividend as debt pressures mount at parent

Vedanta Ltd on Tuesday declared a fifth interim dividend for the fiscal year ending March 31 even as the company's parent, Vedanta Resources, scrambles to secure fresh loans and refinance existing debt.

The Indian natural resources company declared an interim dividend of 20.50 rupees per share.

The move comes days after a report said Chairman Anil Agarwal was weighing selling less than 5 per cent stake in Vedanta. The company called the report "untrue and baseless".

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The dividend payments would lead to an outflow of around 76.21 billion rupees ($927.81 million), the company said in an exchange filing.

The company also said acting Chief Financial Officer Ajay Goel would resign effective April 9 to pursue other opportunities.

Vedanta had previously declared interim dividends per share of 31.50 rupees, 19.50 rupees, 17.50 rupees and 12.50 rupees this fiscal year.

Earlier this month, ratings agency Moody's downgraded Vedanta's London-based parent, warning that ongoing debt-related issues expose Vedanta Resources "to material refinancing risks and exacerbate the likelihood of a payment default or a distressed exchange."

There have been no defaults on debts from the group, Agarwal, Indian billionaire and founder of Vedanta Resources, said at the India Today Conclave earlier this month.

Shares of Vedanta gained 2.2 per cent so far this month, but have lost about 10 per cent year-to-date.