The state-owned company’s board at its meeting on Tuesday declared an interim dividend of Rs 5 per share at a face value of Rs 10 each. The record date for the dividend is March 27.
“We had believed a higher payout was possible considering stake sale in Numaligarh Refinery, sale of BPCL Trust Shares, which after adjusting for an increased stake in Bina refinery implied Rs 60/share of net proceeds,” said Morgan Stanley, which has an overweight rating on BPCL with a target price of Rs 480.
Following the recent stake sale by BPCL Trust, Emkay Global had said the proceeds may also be paid as a special dividend of Rs 40-50 per share in two months. Some of the other large brokerages too predicted a dividend payout of Rs 30-60 per share.
Others believe that the expectation of a dividend was mere hype but a re-rating can come through if a strong international or domestic buyer picks up a stake in the divestment process. The stock had gained 9 per cent in the last three months. “They did some asset sales and realised almost Rs 30,000 crore. There was an unwarranted hope,” said Hemang Jani, head of equity strategy-broking and distribution at Motilal Oswal.
