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State-owned Indian Oil Corp (IOC) has announced an interim dividend worth Rs 6,556 crores along with a share buyback of 29.76 crores worth Rs. 4,435 crores as per the government plan to tap cash-rich PSUs to meet its budget deficit.
According to the IOC’s regulatory filings, “The board of directors declared an interim dividend of 67.5 per cent or Rs 6.75 a share (face value Rs, 10) for the financial year 2018-19.” The company said that dividend will be credited to the account of the shareholders on or before December 31.
IOC in the statement, also said that the record date for the purpose of ascertaining the eligibility of shareholders for payment of Interim Dividend as well as for Buyback of equity shares is fixed on Tuesday, 25th December 2018.
IOC board which declared an interim dividend of 67.5% or Rs 6.75 per share for fiscal 2018-19 will ensure the total dividend payout (excluding tax) of Rs 6,556 crore, out of which the government will get Rs 3,544 crore plus the dividend distribution tax.
As per the IOC regulatory filing, the company’s board approved a buyback of up to 29.76 crore equity shares, or 3.06%, at Rs 149 per share. The buyback price is 8.6% premium to Thursday’s closing price of IOC stocks on the BSE. The government which holds a 54.06% stake in the company is expected to participate in the share buyback.
