GAIL pays dividend of Rs 484.94 crore to Government for the year 2005-06

Gail India Ltd has announced that Shri. S P Rao, Chairman and Managing Director, of the Company handed over a cheque of Rs 96.98 crore to Shri. M S Srinivasan, Secretary, Ministry of Petroleum and Natural Gas on September 01, 2006, towards final dividend payment for the financial year ended on March 31, 2006. Shri. B S Negi, Director, Business Development; Shri. M R Hingnikar, Director (Human Resources) and Shri. R K Goel, Director (Finance), the Company were also present on the occasion. With this payment, the Company has contributed to the state exchequer, an aggregate sum of Rs 484.94 Crores towards dividend for the financial year 2005-06.

Earlier, the shareholders of the Company at their 22nd Annual General Meeting held on August 14, 2006 at New Delhi had approved payment of dividend @100 percent, including an interim dividend payment of 60 percent and special interim divided of 40 percent already declared and paid in the months of January and February, 2006 respectively. The dividend payment during financial year 2005-06 represents a pay-out ratio of 42 percent.

The Company has a consistent track-record of dividend payment. So far, the Company has disbursed dividend of Rs 4,540 crore to the shareholders including Government of India, which is more than five times the original investment of Rs 845.32 crore by the Government in the equity capital of the Company.

Further, the Government has been disinvesting its shareholding in the Company from time to time, bringing down its equity holding to 57.345 percent and thereby contributing to the exchequer an additional amount of Rs 3,400 crore.

Source : Equity Bulls

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