Financial Daily from THE HINDU group of publications
Saturday, Oct 04, 2003
Financial Daily from THE HINDU group of publications Saturday, Oct 04, 2003 |
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Shipping Corporate - Announcements SCI declares special interim of Rs 17; share price spurts Our Bureau
Mumbai , Oct. 3 THE Union Government will get Rs 384 crore by way of interim dividend from Shipping Corporation of India (SCI) ahead of the company's proposed privatisation. The company's board of directors on Friday recommended a special interim dividend of Rs 17 per share (170 per cent) - the highest ever dividend paid by the public sector shipping company since its inception. SCI had paid a total dividend of 30 per cent for 2002-03. The news of the bumper dividend drove up the SCI share by Rs 30 to Rs 140.95 on BSE today. Brokers said that the scrip, which opened at Rs. 110.95, was hovering at the Rs 116-117 range when news of the dividend around 3 p.m. sent it soaring. The share touched a high of Rs 142.80 in the last half hour of trading before closing at Rs 140.95. Over 73 lakh shares changed hands on the BSE and 2.08 crore on the NSE, of which about 1.5 crore shares were traded in the last hour of trading. According company officials, the total outgo on account of interim dividend will be about Rs 480 crore. The dividend will be paid partly out of the company's profits and partly from its reserves, said Mr P.K. Srivastava, Chairman. A large part of the payment would be made out of the reserves, which was about Rs 2,000 crore as on March 2003, another company official said. The payment would be subject to the approval from the Department of Company Affairs, he added. Shareholder approval is not mandatory for an interim dividend. The Government holds 80.12 per cent of the SCI equity capital of Rs 282.32. crore. Institutional investors and the public hold the rest. SCI is scheduled to announce half-yearly results on October 15. The company had reported a net profit Rs 150 crore in the first quarter. With tanker rates witnessing a decline, analysts do not expect a similar performance in the second quarter.
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