Moneycontrol Bureau
Shares of Coal India rallied as much as 5.9 percent in intraday trade on Wednesday on hopes of interim dividend in the forthcoming board meet.
"A meeting of the board of directors of the company will be held on January 14, 2014, to consider payment of interim dividend, if any, for the year 2013-14," the company said in its filing to the exchange.
The company has fixed January 20 as the record date for the purpose of payment of interim divided, if declared by the board.
Meanwhile, there have been reports that the company may announce special dividend by end of FY14.
Sources on Tuesday told CNBC-TV18 that finance ministry wants cash-rich PSUs to consider buyback or special dividend.
According to sources, Coal India board had discussed dividend of Rs 15-25/share. At Rs 25 per share dividend, the government, which holds 90 percent stake, will receive about Rs 17,000 crore as special dividend from the country's largest coal mining company.
Coal India had paid dividend of Rs 14 apiece in FY13.
At 13:36 hours IST, the stock was trading at Rs 289.35, up 4.99 percent amid large volumes on the BSE.
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