New Delhi. Vedanta, which is among the biggest dividend paying companies of India, is once again in the headlines. The reason is not only its demerger plan, but also the belief that the company will definitely break up, but the income stream of the shareholders will not break. Vedanta Group Chairman Anil Agarwal has clearly said that dividend is part of their DNA and whatever the circumstances, the group companies will continue to make payments to the shareholders.
Anil Aggarwal said that dividend is in his blood and shareholders of Vedanta companies will always get dividends. He also said that no matter what happens, dividend payout from his companies will continue. In the last few years, a large part of Vedanta’s shareholder returns have come from dividends. The company is counted among the top dividend yielding large cap stocks of India.
How much dividend received in recent years
So far in the financial year 2025-26, Vedanta has given the first interim dividend of Rs 7 per share, on which a total of Rs 2,737 crore was spent. After this came the second interim dividend of Rs 16 per share, the amount of which was Rs 6,256 crore. In the financial year 2023-24, the company had given a total dividend of Rs 29.50 per share, while in 2024-25 this figure reached around Rs 46 per share.
Why is Agarwal calling demerger necessary?
After getting approval from the National Company Law Tribunal, Vedanta will be divided into 5 different listed companies. Anil Aggarwal says that this decision is not an asset sale or restructuring done out of compulsion, but to uncover the real value of every business. He says that Vedanta is like a banyan tree and each of its businesses has the potential to become a big banyan tree itself. His vision is that every new company should become as big as the existing Vedanta in terms of revenue.
What will be the new structure after demerger?
After demerger, the business of base metals will remain with Vedanta Limited. Apart from this, four more listed companies will be formed in the names of Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron and Malco Energy. Shareholders will get one share of each demerged company for every share of Vedanta. This process is expected to be completed by March 2026.
$20 billion aggressive expansion plan
Along with the demerger, Vedanta is going to do a capex of about $ 20 billion in the next 4 to 5 years. There will be an investment of about $4 billion in oil and gas and aluminium. $2 billion will be invested in zinc and silver, $2.5 billion in power sector and the remaining investment will be made in businesses like iron ore and steel.
Big targets from metals to power
A target has been set to increase silver production from 700 tonnes to 1,500 tonnes by 2030. There is a plan to increase the lead output from 4 lakh tonnes to 20 lakh tonnes. Zinc production at Hindustan Zinc will be increased from 11.3 lakh tonnes to 20 lakh tonnes, while additional capacity of 10 lakh tonnes will be added in South Africa. There is a plan to double aluminum production to 3 million tonnes, with emphasis on captive mines and renewable energy.
Focus on oil gas and green steel
The target of production in oil and gas is 3 lakh barrels per day in the short term and 5 lakh barrels per day in 4 to 5 years. Anil Aggarwal says that the investment environment in this sector has improved due to changes in government policies. In iron ore and steel, the focus will be on green steel, where there is a plan to create a capacity of 15 million tonnes using gas and renewable power.
Dividend and capex together
Anil Agarwal has made it clear that capex is necessary for manufacturing growth and Vedanta will spend aggressively on it. It has also been assured that regular dividend payouts will continue. After the demerger, all the companies will have their own independent boards, professional management and the promoters will remain away from day-to-day operations with around 50 per cent stake. That is, Vedanta’s new structure is an attempt to combine all three – growth, focus and shareholder returns.
