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Shares of state-owned Steel Authority of India's fell 1.9 per cent to Rs 79.45.
The company has declined a government call for a dividend this year, saying it did not have “any cash and bank balance” and that its debt-to-income ratio was much higher than agreed with some lenders, showed an internal company document reviewed by Reuters.
SAIL's refusal could make it harder for the government to meet its budgeted target of raising Rs 1.06 lakh crore ($14.95 billion) from the dividends and profit of state-owned companies this fiscal year ending March. Last fiscal year, the government had received Rs 123 crore, 13 per cent below the then target.
A SAIL spokesman told Reuters that the firm posted a loss in the 2017/18 fiscal year, “so there is no chance of a dividend”.
More than 7.6 million shares changed hands, 0.8 times the 30-day moving average. About 7 of 19 brokerages have rated the stock “buy” or higher, 5 ”hold” and 7 “sell” or lower; their median price target is Rs 86, according to Thomson Reuters Eikon.
Shares of SAIL had fallen 11.9 per cent this year as of last close.
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