Dividend Stock: Over 29 lakh retail investors get a ₹400 crore reward from this OMC

Indian Oil Corporation Ltd. (IOC), India's largest state-run oil refining company has announced the first interim dividend payout for its shareholders at the conclusion of its board meeting on Friday, December 12.

The company's board has approved the dividend of ₹5 per share for its shareholders. This would translate into a 50% payout on face value of ₹10 each.

Record date for Indian Oil's dividend payout has been fixed as December 18. The interim dividend payout will be paid to shareholders on or before January 11, 2026.

In August this year, the company had paid a final dividend of ₹3 per share. The current dividend payout will result in a total outgo of ₹7,000 crore for IOC.

Indian Oil Corporation has issued bonus shares to shareholders on four instances, in 2009, 2016, 2018, and in 2022.

At the end of the September shareholding, Indian Oil Corporation had 29.2 lakh retail shareholders, or those with authorized share capital of up to ₹2 lakh, that owned a 5.64% stake in the company. The cumulative payout for these shareholders will be ₹400 crore.

The Government, which has a 51.5% stake in Indian Oil, will be entitled to a total payout of ₹3,636 crore.

Indian Oil's upstream peers, Oil India and ONGC, which have a 5.1% and 14.2% stake in the refiner respectively, will be entitled to a dividend payout of ₹364 crore and ₹1,002 crore respectively.

Shares of Indian Oil Corporation (IOC) are trading 0.8% higher on Friday at ₹162.98. The stock is down 5.5% in the last one month and has risen 19% so far this year.