Vedanta share price in focus ahead of dividend announcement, demerger delays. Opportunity to buy?

Vedanta share price: Shares of metal and mining major Vedanta Limited traded in a tight range on Thursday, August 21, ahead of the board meeting to consider the second interim dividend. Furthermore, investors also assessed the various hurdles the Anil Agarwal-led company faces with respect to its proposed merger.

Vedanta share price opened hit the day's high of ₹448.90 and a low of ₹443.10 in trade so far. The trading volumes were significantly lower than the two-week average.

The company earlier this week announced that the board meeting is scheduled for August 21 to consider and approve the second interim dividend for the financial year 2025-26 (FY26).

Vedanta has already fixed the dividend record date to determine the entitlement of the equity shareholders as Wednesday, August 27.

Meanwhile, according to a Nuvama report, quoted by NDTV Profit, Vedanta could announce a dividend of over ₹10 in today's board meeting.

While the investor focus remains on Vedanta's dividend announcement, the company faces hurdles in its demerger plans. The National Company Law Tribunal (NCLT) yesterday shifted the date for the Vedanta demerger hearing to September 17.

This move follows the Indian government's concerns about Vedanta’s plan to split into four separate companies, stating that the move could complicate the recovery of money the company owes, according to CNBC-TV18.

During a hearing at the NLCT, the government claimed that Vedanta changed its demerger plan after getting approval from the Securities and Exchange Board of India (SEBI), CNBC reported.

Vedanta, according to a Reuters report, stated that it has submitted a detailed response to the government's concerns, although it did not disclose the contents.

The company informed the tribunal that it plans to provide a corporate guarantee through one of its units in favour of the Ministry of Petroleum and Natural Gas to support the recovery of the dues in question.

Back in December, the oil-to-metals conglomerate announced it would reorganise into four separate listed companies, while keeping the parent company listed — a revision from its earlier plan to split into six businesses.

Earlier this month, Vedanta also disclosed that it had received a warning letter from SEBI regarding certain compliance issues, but it did not address the government's recent claims in its response.

Anshul Jain, Head of Research at Lakshmishree, said Vedanta has been consolidating in a defined range of 468–425.9 for the past three months, with price action suggesting stability but limited directional momentum.

“Some signs of accumulative volumes are visible within the base, indicating quiet buying interest at lower levels. However, the structure is not yet mature enough for a breakout, and the stock is likely to extend its sideways move for a few more weeks. Traders can look to play the range until a decisive close outside 468 or 425.9 provides clarity on the next directional move,” he advised.

Meanwhile, Geojit Financial Services, in a report on August 18, said that it has upgraded its rating on Vedanta stock to ‘BUY’ with a revised target price of ₹485, based on 4.6x FY27E EV/EBITDA.

Vedanta’s financial performance was moderate in Q1FY26, characterised by commodity price volatility and changing global trade dynamics. “Despite the macro headwinds, domestic demand was strong, helping support market premiums. Margins were strong across key businesses, driven by operational excellence and cost discipline,” the brokerage added.

Furthermore, it believes that the company's commitment to deleveraging and improving its capital efficiency, along with a robust business model, strong governance framework, and transparent disclosures, positions it well to address challenges and capitalise on opportunities in the industry.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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