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Shares of Coal India Ltd today rose by over 6 per cent after the company declared an interim dividend of Rs 29 per share amounting to Rs 18,317 crore, or a record 290 per cent, for 2013-14.
After making a strong opening, shares of the state-owned firm further gained 5.19 per cent to Rs 304.95 on the BSE.
On the NSE, the stock shot up by 6.55 per cent to Rs 307.85.
“This special interim dividend is positive for minority shareholders of the company. We believe the stock is likely to react positively in the near-term,” brokerage firm Angel Broking said in a report.
The central government, which faces the uphill task of meeting Rs 40,000-crore disinvestment target this year, will get Rs 16,485.71 crore for its 90 per cent stake in the Maharatna company.
After including the dividend distribution tax of Rs 3,113 crore, the bonanza for the government is Rs 19,598.76 crore.
The announcement, which market observers termed as a special dividend to the government, comes at a time when the Centre’s plans to sell 5 per cent stake in the company are facing strong opposition from trade unions.
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