SP Tulsian of sptulsian.com told CNBC-TV18, "The board meeting of Coal India will be held today and the company is going to consider an interim dividend and not as a special dividend. If you take the annual profit of the company of Rs 18,000 crore, when you say that I am going for the special dividend or interim dividend whatever in lieu of the offer for sale (OFS), because government wants to mobilise close to about Rs 20,000 crore; you are expecting that at least one year's profit will be distributed amongst the shareholders that is Rs 18,000 crore."
He further added, "If you distribute Rs 15,000 crore, I am talking of including dividend distribution tax which is about 17 percent. I am taking 117 percent of the dividend declared. So of that amount that is Rs 15,000 crore the share price works out to about Rs 20 per share, I think that that will really be a big disappointment. If you really see the difference between cash and futures, there is a difference of about Rs 15-16; future is ruling at Rs 15-16 lower."
"If you see the trend in the PSU banks, there have been a great disappointment, the dividend which has been declared by the PSU banks, for FY13 they have hardly given 30 percent of that as an interim dividend. Any dividend below Rs 25 or up to Rs 25 is going to disappoint the market, because now market is talking of Rs 15,000 crore as distribution which works out to Rs 20 per share. The market will really be disappointed for any dividend below Rs 25 and that can make the stock to fall below Rs 280," Tulsian said.
Disclosure: He does not hold the stock.
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