This post belongs to my This is India ! series
NMDC held a Board Meeting on 17th March, 2018 and decided not to issue an interim dividend
The market reacted very badly and the stock crashed by around 7% the next trading day.
So imagine the market’s surprise when less than 10 days later NMDC offered a whopping interim dividend of Rs.4.3 (Dividend Yield of 3.5%)
The fact that the dividend is proposed to be paid before 31st March, 2018 betrays the fact that the Co was arm twisted by its largest shareholder (the Govt of India) who will gain around 1,340 Crores from the dividend.
Hat Tip: Sunil Jain