Shares of Esab India moved higher by 10 per cent to Rs 1,198 on the BSE on Thursday after the company announced an interim dividend of Rs 70 per share for its shareholders.
“The board of directors of the Company at its meeting held today i.e, 28 May, 2020 has declared an interim dividend of Rs 70 per equity share of Rs 10 each (700 per cent) for the year ended 31 March, 2020 resulting in an outflow of Rs 107.75 crore (subject to deduction of tax at the source where applicable),” Esab India said in an exchange filing.
The said interim dividend declared by the board of directors would be paid to the equity shareholders by 23 June, 2020, it added.
Meanwhile, the company said in the near term, the demand for the Company’s product will be impacted which will have some impact on its results in the short-term.
Since the gradual easing of the lockdown from April 15, 2020, and in line with the various directives of the Government, the Company’s plants have commenced operations in a phased manner. As of today, partial operations have resumed at all company’s manufacturing sites. The company is operating at around 50 per cent of its operational capacity at different locations and hopes to improve this in the coming days.
The situation remains fluid, and as the duration and scope of Covid-19 continue to evolve, it is not possible to estimate the full extent of its impact on the company’s business at this time. The company will continue to monitor all material changes as the situation evolves, it added.
At 11:07 am, Esab India was trading 9 per cent higher at Rs 1,188 on the BSE, as compared to a 1.6 per cent rise in the S&P BSE Sensex. A combined around 36,000 shares changed hands on the counter on the NSE and BSE so far.