Vedanta Ltd has laid down a dividend policy committing a minimum of 30% attributable profit after tax to be distributed as dividends. This will help its international holding companies such as Vedanta Resources Ltd (VRL) and Twin Star Holdings to repay their debt, it said.
Separately, the company has also sought shareholder’s nod for related party transactions worth INR 86.6bn ($1.1bn) for the current financial year. These related parties include Bharat Aluminium Company (BALCO), ESL Steel, and Sterlite Power Transmission and the proposed transactions will be raised at the AGM (Annual General Meeting) to be held on August 10. The BALCO transaction of INR 49.8bn ($620mn) entails the sale and purchase of goods and services, stores and spares, and fixed assets during the financial year. The other two transactions with ESL Steel and Sterlite Power Transmission are worth INR 17.1bn ($210mn) and INR 19.6bn ($250mn) respectively with no details behind these transactions. In its last annual report, the company mentioned that it will move to value-added products and will undertake future capex with a focus on ESG, volume augmentation, cost reduction. Vedanta seeks to invest in growth projects having minimum expected IRR of 18% and sustaining capex on a per tonne basis.
VRL’s dollar bonds were trading down with its 7.125% 2023s up over 0.6 points to 78.30 cents to the dollar.