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Indian Oil interim dividend will swell govt wallet by Rs 2,060 cr

State-owned Indian Oil has declared an interim dividend of Rs 4.25 per share, which will swell the government’s wallet by Rs 2,060 crore
New Delhi: State-owned Indian Oil has declared an interim dividend of Rs 4.25 per share on Friday, which will swell the government’s wallet by Rs 2,060 crore. “The Board of Directors of the company at its meeting held today (Friday) has declared an interim dividend of 42.50 percent i.e. Rs 4.25 per equity share of face value of Rs 10 each for the financial year 2019-2020,” Indian Oil said in a regulatory filing to the stock exchanges. The government currently holds 51.05 percent stake in Indian Oil and will therefore receive over Rs 2,060 crore plus taxes.

Indian Oil dividend will be credited before March 31

The regulatory filing told shareholders, “The dividend will be credited to the account of the shareholders or the dividend warrant in respect thereof will be dispatched on or before March 31, 2020.” Indian Oil’s board has fixed March 25 as the ‘record date’ for the purpose of ascertaining the eligibility of shareholders for the payment of interim dividend at the meeting. Indian Oil shares were trading 4.50 percent higher at Rs 91.70 on BSE on Friday.

The backdrop

The news comes as Indian Oil is ready to supply BS-VI fuel from April 1. CMD (Chairman and Managing Director) Sanjeev Singh had said in February that there will be only a marginal increase in retail prices. The oil marketing company (OMC) has already spent over Rs 17,000 crore on upgrading its refineries to produce BS-VI petrol and diesel, a senior company executive had said on February 27.