Metals and mining major Vedanta Ltd today announced second interim dividend amounting to Rs 6,580 crore for shareholders including those of Cairn India. Both the companies had announced this week that they have received all regulatory approvals for their merger, except the Reserve Bank of India’s nod for issue of redeemable preference shares to non resident shareholders of Cairn. “The total amount of dividend payout including that to Cairn shareholders is Rs 6,580 crore,” Vedanta Ltd said.
The board of directors of the company have also approved the second interim dividend of Rs 17.70 per equity share i.e. 1,770 per cent on face value of Re1 per share for the financial year 2016-17, the company said.
Further, the board has also approved dividend of Rs 17.70 per equity share to shareholders of Cairn India Ltd, who will become shareholders of the company pursuant to the Scheme of arrangement between Vedanta Ltd and Cairn India Ltd, the company said in a filing to BSE.
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The dividend will be paid to Cairn India Ltd shareholders as on a record date to be fixed after the Scheme becomes effective.
As on third quarter ended December 31, 2016 of the current financial year, Vedanta Ltd’s total debt stands at Rs 64,966 crore.
The merger between Vedanta Ltd and Cairn India will be made effective upon receipt of the RBI approval.
In July last year, Vedanta had sweetened its merger proposal to win over minority shareholders like LIC.
The two companies announced plans to merger last June giving Vedanta access to the cash of Cairn India and help cut debt.