Well there is a lot of theories around Adani and his links to the govt - IDK how much is true, but the links do seem to be there and there was almost no reaction from the govt bodies on the claims. This does create a cause of concern about the level of corruption.
But keeping that aside, if there is any support to VEDL, it will be towards HINDZINC.
Glad I sold it off today - man the tariff news will hit metals too and Vedanta will be facing double hits. It is already on this ice and does not need tariffs to add more to it.
Hi community. I have a question on the demerger, Since NCLT is against Talwandi Sabo power’s demerger case and I saw there was a hearing which happened yesterday. Has anyone heard any updates on this? What is the result? Can’t see any news reporting on this. I mean if it is good for Vedanta then the demerger may happen, if not, then the demerger in September may not be possible.
The hype of dividend from yesterday is not sustained, as it shouldn’t anyway. The dividend payout ratios are not sustainable at all. Today’s news is a much bigger shock for Vedanta. The demerger has always been considered as the key factor for potential rally. Retail investors had a lot of hopes from this, I did so last year, until they started delaying it.
Deferring it to 17th September basically means that the demerger will be extremely hard to achieve by the end of September as they promised. And if the hearing is not successful, 17th September will be a dark day for Vedanta. What do you think the dividend will be for tomorrow?
A few things listed as violation here:
Regulation 23(1A) of SEBI’s LODR mandates shareholder approval for brand or royalty payments exceeding 5% of turnover.
Regulation 23(1) requires approval for related-party transactions above ₹1,000 crore.
Both thresholds are cumulative, as clarified by SEBI’s Primary Market Advisory Committee (PMAC) and reinforced in 2022 amendments.
This is evident violation. And this isn’t new, the same rules apply to Vedanta limited, this could go back years, as we all know now!
If shareholders take a stand, we could reclaim over ₹12,500 crore across the group. It’s a massive opportunity to restore value to the company. Stopping these brand fees could boost HZL’s valuation by a huge amount, based on P/E and EV/EBITDA multiples that is these huge brand fees are draining value from the company. Removing them would directly improve profitability and cash flow, which in turn would enhance the company’s valuation, whether you look at earnings-based or cash-flow-based metrics.
How much are you expecting the price to be for tomorrow? It dropped 22, more than the dividend amount 16, yesterday. May recover a little bit, but I think it won’t recover until the dividend is paid. And now with all these negative new surrounding Vedanta, not sure how resilient it will be
Before the dividend payment, it may go further down, today it was down around 1.5% at some point. And news around Vedanta is not great recently, everyone should check this ET article:
Zambia Konkola Copper Mines (KCM) has been returned to the company after years of government seizure, but in fact it’s a severely distressed asset, like flooded mines, gutted smelters, and collapsed production. Despite this, Vedanta resources has pledged a $1.2 billion investment to revive KCM, a commitment that will be financially supported by Vedanta Limited. The disputes have never stopped in Zambia on KCM, Vedanta has a bad reputation there.
This matters to VEDL shareholders even though it is not directly holding KCM, because they are effectively funding a non-viable project: the pledged investment far exceeds the realistic value of the assets, and the amount is huge!
Quote: For at least the past 5 years, Vedanta Limited (VEDL) has repeatedly emphasized its intent to reduce dependence on external coal sources. This has a direct impact on the Company’s parent, Vedanta Resources Limited (VRL), whose ability to deleverage and refinance is built on a narrative of operational delivery.
Vedanta’s coal self-sufficiency plan is central to its cost structure and Vedanta Resources’s debt story. But with all three blocks stuck in limbo, the execution risk is real. No progress
Let’s see what the hearing for PIL tomorrow morning leads to. After yesterday’s share price tumble, I think people need to be more cautious. It was roller coaster yesterday.
What’s your thoughts on the new debt? They announced refinancing at the end of June, but apparently that didn’t succeed. Now that the parent company is raising new debt, that’s at the parent company level, with assumption that the cash from subsidiaries are stable and uninterrupted as said by the credit rating analysts. That is putting pressure on the subsidiary liquidity, what if they actually will pay lower dividend in September, or actually won’t pay at all.
Yes, makes sense, it is possible they won’t pay as much dividend or no dividend, for next dividend or the one after.
“An ED investigation could result in asset or bank-account freezes and restrictions on cross-border remittances, as seen in the 2022 Xiaomi case where the agency seized more than US$700mn over alleged royalty payment violations. In that instance, courts upheld the ED’s freeze and required guarantees before releasing funds. Similar measures against Vedanta would directly undermine its liquidity model.”
This is an important reference for what might happened if ED comes in. Asset freeze will directly lead to no dividend payment, credit rating cut, and share price collapse. It’s a matter of time for when that will happen, SEBI RBI have been so slow.
