Cairn India, controlled by billionaire Anil Agarwal?s Vedanta Group, declared its first ever dividend on Wednesday.
The interim cash dividend of R5 on a face value of R10 per share will be paid to shareholders on record as on November 6, the company said in a press statement. The move will see Cairn India payout R1,109 crore including taxes of R155 crore. London-listed Vedanta Group, which holds 58.82% stake in Cairn India, will receive about R561 crore from the dividend.
Cairn India earlier this month reported a more than three-fold rise in quarterly profit as it ramped up production at its key oil block in Rajasthan. The company, which had a net cash of R12,442.7 crore at the end of September, said it was now well positioned to grow by building a balanced portfolio of assets and resources. ?While deciding the quantum of payout, the twin objective of stable dividend payout and investment for growth has been kept in view by the board,? the statement said.
Cairn India approved a dividend policy of around 20% of annual consolidated net profits in April, shortly after Vedanta bought a majority stake in Cairn Energy of UK. When the company announced quarterly earlier this month, it said it had set up a board meeting on October 31 to consider the dividend payment. ?The payment of dividend was subject to the completion of corporate reorganisation, which has occurred on October 18,? the statement added. Cairn India share went up marginally to close at R336.60 on the BSE.
