Coal India gains on special dividend of Rs 29/share

The dividend amount would fetch Rs 16485.71 crore to government exchequer

Shares of Coal India were up 2% at Rs 296 after the board late Tuesday approved a special dividend for the current financial year, which would fetch Rs 16485.71 crore to government exchequer and help meet its disinvestment target of Rs 40,000 crore.

The CIL board, which met late Tuesday, approved highest ever interim dividend of Rs 29 per share of face value of Rs 10.

“The total out-go from the company would be around Rs18,317.46 crore out of which Government of India who holds 90% of company’s shares would get Rs 16,485.71 crore,” CIL CMD S Narasing Rao told  reporters after the board meet.

Beside, government would also get dividend distribution tax of Rs 3,113.05 crore from CIL and its subsidiaries.

Thus government would get Rs 19,598.76 crore from CIL and its subsidiaries by way of dividend and its tax.  

This dividend would be disbursed on and from January 25, 2014 to those shareholders who are holding the CIL shares on January 20, 2014.