Stocks

Coal India’s second interim dividend likely to be ₹4-5 per share

PTI | Updated on March 04, 2021

The miner had announced 7.5 per share as first interim dividend in November; in the previous year, CIL had paid ₹12 dividend

 

State-owned Coal India’s second interim dividend could be in the range of ₹4-5 per share as it is working to match the previous year's total dividend, amid an outstanding of ₹25,000 crore, coupled with sluggish demand, sources said on Thursday.

The miner had announced ₹7.5 per share as the first interim dividend in November.

Also read: Climate finance essential for India to quit coal: IEA chief

The board of Coal India is slated to meet on March 5 as it mulls a second interim dividend payment.

Coal India is facing a tough time but it is working to match at least last year's total dividend payout, which was ₹12 per share, sources told PTI.

"We will try to support our best in these trying times for the government," a source said.

As the miner has already paid ₹7.5 per share as the first interim dividend, it is likely to announce another dividend of ₹4-5 per share, the source said.

However, all aspects will be debated at the board meeting, said the source.

This will be the final dividend for the year, the source said.

The miner has also revised its capex plans to ₹13,000 crore from ₹10,000 crore after the government asked it to push expenditure to spur demand in the post-lockdown period.

However, the outstandings continued to mount and reached ₹25,000-crore even as the government announced ₹90,000-crore liquidity infusion to support gencos.

Published on March 04, 2021

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