Why Coal India may not be able to dole out a large payout immediately - Kotak

Constrained by an archaic legal framework that looks only at standalone financials, Coal India may not be able to dole out as large a payout immediately as may be anticipated. Dividends are, by law, restricted to accumulated standalone earnings (Rs. 22/share of Rs. 142 bn based on FY2013) and buy-back is restricted to 25% of standalone net worth (2.7% of outstanding equity or Rs. 51 bn).

Source : Equity Bulls

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