Coal India down 6% as stock ex-dividend
Shares generally trade weak ex-dividend as the stock price falls by approximately the same amount as the dividend announced.
The company will pay an interim dividend of Rs16.50 per share for Apr-Mar (2017-18). It has set Monday as the record date for payment of dividend.
Coal India holds a dominant market share in coal mining and produces 84% of the nation’s coal output. The production for the company stood at 543mn tonnes in FY17 against a target of 599mn tonnes (91% of target). The YTD offtake for CIL stands at 383.9mn tonnes against a production target of 406.6mn tonnes. The production target for FY18 stands at 630mn tonnes, an increase of 5% over last year’s target. The Working Group on Coal and Lignite has stated that they plan to expand production of CIL to 908mn tonnes by FY20.