State-owned NTPC is likely to announce an interim dividend this month to help mop up additional revenue for the government, which may fall short of its disinvestment target of Rs 40,000 crore for this financial year.
The country's largest power producer would follow Coal India, which earlier this week declared an interim dividend of Rs 29 a share, amounting to over Rs 18,000 crore. NTPC's board of directors is scheduled to consider quarterly financial results as well as interim dividend on January 28.
The company fixed February 3 as the record date to ascertain eligibility of shareholders for payment of interim dividend, if declared, according to regulatory filings today.
Sources said NTPC may declare interim dividend at the same level as in 2012-13 or slightly higher. The NTPC board had declared an interim dividend of Rs 3.75 a share on February 26, 2013. At this level, the payout in the current financial year could exceed Rs 3,000 crore.
The company had 824.5 crore outstanding shares at the end of December 2013. The government, which held a 75 per cent stake in NTPC at the end of December, stands to get about Rs 2,300 crore. In addition, the government would get dividend distribution tax.
NTPC shares declined 1.05 per cent to close at Rs 131.60 on the BSE.
So far this fiscal, the government has garnered about Rs 3,000 crore through disinvestment in MMTC, Hindustan Copper, Neyveli Lignite and National Fertilisers.
Earlier this month, Finance Minister P Chidambaram had met chiefs of top PSUs, including NTPC. After Coal India announced interim dividend, it was expected that other PSUs like NTPC, ONGC, GAIL, SAIL and NMDC would follow suit.
Meanwhile, the government is also looking to offload residual stakes in private firms such as Hindustan Zinc, Balco and Axis Bank.
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