Oil and Natural Gas Corporation declared on Tuesday its highest-ever interim dividend of Rs 18 on shares of Rs 10 each (180 per cent) for 2006-2007.
Shareholders would be eligible to receive the dividend immediately after the record date of December 28, without waiting for the mandatory period of 30 days, ONGC informed the Bombay Stock Exchange.
The shares of the company were up 2.28 per cent at Rs 885 during intra-day trade on the BSE.
"Notwithstanding the continuing volatility in crude prices, the board decided to reiterate ONGC's commitment to live up to shareholders expectations for value enhancements," ONGC Chairman and Managing Director R S Sharma said.
This interim dividend works out to Rs 3,850 crore (Rs 38.5 billion), including Rs 2,854 crore (Rs 28.54 billion) to the government. This year ONGC has also issued bonus shares in the ratio 1:2, increasing its capital from Rs 1,426 crore (Rs 14.26 billion) to Rs 2,139 crore (Rs 21.39 billion).
The interim dividend of 180 per cent is on the post-bonus expanded equity capital of the company and is equivalent to 270 per cent in pre-bonus terms in the current fiscal.
This is eight per cent higher as compared to the interim dividend of last fiscal 2005-06 in which ONGC had declared an interim dividend of 250 per cent and an aggregate dividend of 450 per cent amounting to Rs 6,417 crore (Rs 64.17 billion). ONGC will also be paying a dividend tax of Rs 540 crore (Rs 5.4 billion).
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