Coal India shares continue to rise for second day, up nearly 3%

PTI Posted online: Thursday, Jan 09, 2014 at 0000 hrs
Mumbai : Rising for the second straight session, Coal India shares rose by nearly 3 per cent today after the state-owned company scheduled a board meeting next week to consider payment of an interim dividend.

Coal India's scrip ended at Rs 295.70, up 2.41 per cent after rising to Rs 297 during the day on the BSE.

At the NSE, the stock settled 2.79 per cent higher at Rs 296.85. In the previous session, the stock had gained almost 5 per cent.

"A meeting of the board of directors will be held on January 14...to consider payment of interim dividend, if any, for the year 2013-14," Coal India had said in a BSE filing.

The record date for dividend payment has been fixed at January 20.

The Finance Ministry, seeking to meet its disinvestment target of Rs 40,000 crore for the current financial year, wants CIL to dole out a special dividend if the government's proposed stake sale does not take place.

The sale of a 5 per cent stake in CIL held by the government would fetch more than Rs 9,000 crore at the current market price.

"If CIL does not go for divestment, then they have to provide us a special dividend," Economic Affairs Secretary Arvind Mayaram told PTI in an interview.

In 2012-13, CIL had paid a total dividend of Rs 8,842.91 crore to the government, the highest ever in the history of the company.