Cairn India declares maiden dividend of Rs5 per share

Cairn India, with majority holding by billionaire Anil Agarwal's Vedanta Group, today declared its maiden dividend of Rs5 per share. According to the company, the interim cash dividend of Rs5 on a face value of Rs10 per share "is proposed to be paid on or before November 15, 2012, to shareholders on record as on November 6, 2012."

For Cairn India, with a net cash of Rs12,442.7 crore as on 30 September, the maiden dividend would entail a payout Rs1,109 crore including the dividend distribution tax of Rs155 crore.

Vedanta Group, which holds 58.82 per cent stake in Cairn India, would get Rs561.35 crore from the dividend.

According to Cairn, the company 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's acquisition of majority stake in Cairn Energy Plc of UK, Cairn India in April approved a dividend policy of around 20 per cent of annual consolidated net profits.