Firms rush in to finalise dividend payouts

Investors may be set for an early windfall as a host of companies, including giants like Reliance Industries are rushing in to finalise their interim dividend payments to outsmart a hike in dividend distribution tax proposed in the Union Budget.

In just two days after the finance minister proposed a hike in DDT from 12.5 to 15 per cent, over a dozen companies have already announced their board meetings to consider payment of interim dividends.

The list of companies scheduled to mull dividend payments in next few days include -- corporate behemoth Reliance Industries, FMCG majors Nestle, Colgate Palmolive, Nalco, Wockhardt and Sun Pharmaceuticals. Goldiam International, DMC international, Esab India, Grindwell Norton, Navneet Publications, Ultramarine and Pigments and Sundaram Finance

are among the others who are rushing in for giving the interim dividends.

The finance minister has proposed that the rate of dividend distribution tax to be raised from 12.5 per cent to 15 per cent on dividends distributed by companies and to 25 per cent on dividends paid by money market mutual funds and liquid mutual funds to all investors.

Television Eighteen, Gail India Ltd, DIC India, Godavari Power, MMTC are scheduled to hold their board meeting in March, although they had scheduled these meetings before the budget proposals came.