If you’re an existing shareholder in Coal India, the coming week may be rewarding for you as the world’s largest miner is expected to announce an additional final dividend of 20-25% in its scheduled board meeting on Monday, June 14. The company is also expected to announce its fourth-quarter earnings results on the day.

Coal India failed to achieve, however, failed to achieve its full-year targeted production in 2021 but exceeded the revised capital expenditure target of Rs 13,000 crore.

A PTI report quoting sources said the board might declare another round of dividend which is expected to be less than two interim dividends of Rs 7.5 and Rs 5 on each share of Rs 10 each.

The total interim dividend for the financial year 2021 is Rs 12.5 per share and the final dividend is expected to be Rs 2.-2.5 per share which will take the final total dividend to Rs 15 per share, the report added.

The central government, which is the biggest shareholder in the miner with 66.13% holding is expected to the biggest beneficiary.

Analysts expect Q4 earnings to remain muted but investors are more bullish on the stock which rose over 6% in the previous week.

The report quoting the anonymous source said the capex target was raised to Rs 13,000 crore from Rs 10,000 earlier after the government asked the company to support the Covid-hit economy. The target has been achieved, it added.

Coal India’s total capex for FY21 stood at Rs 13,115 crore, a rise of 109% as compared to the previous year’s capital expenditure of Rs 6,270 crore.  Spending on procurement of heavy machinery was the biggest component of Coal India’s capex in the previous year at Rs 3,453 crore, followed by land at Rs 2,470 crore.