ONGC Board declares Interim Dividend

Oil & Natural Gas Corporation Ltd (ONGC) has announced that the Board of Directors of the Company at its meeting held on December 23, 2006, has declared an Interim Dividend @ Rs 18/- per share (180%) for the financial year 2006-2007. This is on the post-bonus expanded equity capital of the Company. Earlier during the year, the Company had issued bonus shares in the ratio 1:2, thus increasing its capital from Rs 1,426 Crore to Rs 2,139 Crore.

The interim dividend of 180 per cent in the current fiscal is equivalent to 270 per cent in pre-bonus terms, thus 8 per cent higher compared to the interim dividend of Last fiscal 2005-06. In FY 2005-06, the Company had declared an interim dividend of 250 per cent and an aggregate dividend of 450 per cent amounting to Rs 6,417 Crore.

In absolute terms, this interim dividend works out to a pay-out of Rs 3,850 Crore (on the post-bonus paid-up capital of Rs 2,139 Crore), including Government of India share (74.14%) of Rs 2,854 Crore. This is the highest-ever interim dividend paid by the Company.

In addition, the Company will be paying a dividend tax on the above, which works out to be Rs 540 Crore. It has also been decided to pay the dividend immediately after the record date of December 28, 2006, without waiting for the mandatory 30 days period.

Speaking on the occasion, C&MD of the Company Mr. R S Sharma said that notwithstanding the continuing volatility in crude prices, the Board decided to reiterate ONGC's commitment to live up to shareholders expectations for value enhancements.

Source : Equity Bulls

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