Indian Stock market was trading marginally lower on Tuesday after closing...
According to an announcement made on Wednesday by Hero Honda Motors Ltd, the company will give a 3,500% dividend, or Rs 70, per equity share for a face value of Rs 2 to its shareholders. The company didn’t announce exactly how much money this would cost them, but it’s estimated to total somewhere around Rs 1,500 crore.
Regarding the total cost, a senior official of Hero Honda said, “The exact figure I can tell only after calculations. There is nothing surprising in this announcement as the company has performed well. We have enough cash surplus. Last year too, we shared a similar dividend with all the stockholders. So, I do not see it having any negative impact on revenues in the long run”.
Jatin Chawla, an Analyst at Hero Honda said giving out such dividends was a good trend to keep going because it kept investors happy, and investors are more willing to put their money into companies that will willingly share their profits with them.
In other news, the company appointed Toshiyuki Inuma as a Non-Executive Director effective April 13, and it accepted the resignations of Yuji Shiga, Non-Executive Director, and Shobhana Bhartia, Independent Director, from its board, also effective April 13.