In that connection, I wish to raise the following concerns:Considering that the government and the promoters of the Vedanta Group hold 29.5% and 64.92% equity holding in HZL respectively, for every one rupee dividend that the government gets, the Vedanta promoters get Rs 2.2. In other words, by declaring dividends, it is the Vedanta promoters that gain more than twice what the government gets. First, by losing its surplus resources, HZL has eroded its own intrinsic value. By helping the Vedanta promoters to take away more than Rs 42,250 Crores from HZL as dividends, is the government indirectly granting an undue benefit to them? Does it imply the government’s intention to undersell its stake in HZL, perhaps to hand it over on a silver platter to the Vedanta promoters?

Source: Economic Times March 18, 2023 00:34 UTC