State-controlled Coal India Limited has announced an interim dividend of 72.5% per cent or Rs. 7.25 a share (face value Rs.10) worth about Rs. 4500 crores. The current development reflects the ongoing push by the government to tap cash-rich Public Sector Undertaking (PSUs) to better utilize their surplus by either paying a higher dividend or share buyback.
Coal India Limited, in its BSE filing yesterday, announced: “The Board of Directors in its meeting on Thursday, the 20th December’ 2018 had approved payment of Interim Dividend for the financial year 2018-19 @ Rs 7.25 per share of the face value of Rs 10/- as recommended by the Audit committee of CIL in its meeting held on date.”
“As already intimated to stock Exchanges vide letter dated 17th December 2018 that the company has fixed Monday, the 31st December 2018 as ‘Record Date’ for the purpose of payment of Interim Dividend on equity shares for the Financial year 2018-19. The date of payment of ‘Interim Dividend’ is ‘on and from 5th January’ 2019′.” Coal India Ltd said in the filing.
The Union Government, which holds 486.17 crore shares or 78.32 per cent stake in the company, will receive more than Rs. 3500 crores, whereas LIC will collect 463.81 crores through its holding in the PSU.