Coal India tumbles 8 per cent owing to ex-dividend

Shares of Coal India  Limited (CIL) tumbled over 8 per cent amid massive selling by investors as the stock went ex-dividend today. State-run coal mining company said, board of directors, on March 5, approved payment of interim dividend for the financial year 2015-16 at Rs 27.40 per share on face value of Rs 10. Date of payment of interim dividend is on and from March 21, it added. The company has fixed March 15 as record date for payment of interim dividend.

The blue-chip stock was the biggest loser among the 30 Sensex components. The stock slumped 8.36 per cent to Rs 292.35 on BSE. At NSE, shares of the company tanked 8.43 per cent to Rs 292.

The largest beneficiary will be the Central government, which holds 79.64 per cent and will get a dividend of Rs 17,308 crore. In FY15 and FY14, it paid dividend of Rs 20.7 per share and Rs 29 per share, respectively.

On valuation front the stock of company is trading at Trailing Twelve Month (TTM) P/E of 13.12 compared to industry P/E of 11.95. The stock of the company closed at 296.85, a decrease of 7 per cent from the previous close.

Meanwhile five worker unions of CIL will meet Coal and Power Minister Piyush Goyal today to deliberate on various issues, including disinvestment. Four Central Trade Unions (CTUs) of the coal sector had earlier issued a notice warning against a strike on March 29.

Coal India Limited (CIL) is an India-based holding company. The company is engaged in the production and sale of coal. It operates through approximately 82 mining areas spread over eight provincial states of India. The Company has approximately 430 mines; in which 227 are underground; 175 are opencast; and 28 are mixed mines.