Coal India rallies over 5% on declaring higher dividend

MUMBAI: Shares of Coal India rallied as much as 5.1 per cent after it announced a higher dividend of Rs 29 per share, amounting to Rs 18,317 crore, for 2013-14.

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.

Coal India Ltd (CIL), which is sitting on a cash reserve of Rs 62,236 crore as on March, 2013 will pay the dividend from January 25. Last year, it had paid Rs 9.7 per share as an interim dividend and paid it from March, 2013.

At 09:25 a.m.; the stock was at Rs 295.95, up 2.10 per cent, on the BSE. It touched a high of Rs 304.95 and a low of Rs 294.65 in early trade.