Exploration major Oil & Natural Gas Corporation (ONGC) announced in December 2010 that its board decided to give a 320% special interim dividend and bonus shares to its shareholders. The interim dividend will given besides splitting shares into two ahead of its public issue where the government will disinvest its 5% stake to raise about Rs 11000 crore.
The Indian government which currently holds around 74.11% stake in ONGC will be the largest beneficiary of special interim dividend. The government will get Rs 5074 crore. The government will also get Rs 1163 crore as dividend tax.
Indian government had earlier approved splitting each share of ONGC into two thereby making it attractive and affordable for retail investors ahead of the follow-on public offer (FPO).
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