Cairn India declares maiden dividend

Cairn India declares maiden dividend New Delhi: Cairn India, majority owned by billionaire Anil Agarwal's Vedanta Group, Wednesday declared its maiden dividend of Rs 5 per share.

The interim cash dividend of Rs 5 on a face value of Rs 10 per share "is proposed to be paid on or before November 15, 2012, to shareholders on record as on November 6, 2012," the company said in a press statement here.

For Cairn India, which had a net cash of Rs 12,442.7 crore as on September 30, this maiden dividend will entail a payout Rs 1,109 crore including the dividend distribution tax of Rs 155 crore.

Vedanta Group, which holds 58.82 percent stake in Cairn India, will get Rs 561.35 crore from the dividend.

Cairn said it was now well positioned to grow by building a balanced portfolio of assets and resources.

"While deciding the quantum of payout, the twin objective of stable dividend payout and investment for growth has been kept in view by the Board," the statement said.

Soon after Vedanta bought a majority stake in Cairn Energy Plc of UK, Cairn India in April approved a dividend policy of around 20 percent of annual consolidated net profits.

"The payment of dividend was subject to the completion of corporate reorganisation, which has occurred on October 18," the statement added.

PTI