Coal India down 2% as stock trades ex-dividend

Shares of Coal India fell 2% on August 18, with the stock trading ex-dividend today.
The Board of Directors meeting on 7 May 2023 proposed a final dividend of Rs 4 (40%) per share. A second interim dividend of Rs 5.25 (52.50%) per share and a first interim dividend of Rs 15 (150%) per share have been announced for the financial year 2022-23 .
The record final dividend payment date is set for August 18, 2023.
When a stock becomes ex-dividend, its price usually decreases with the amount of the dividend. This reflects the fact that new shareholders are not entitled to this payment.
As of 10:16 a.m., the coal giant’s shares traded down 1.7% to Rs 228.2 on BSE. The state-owned miner reported an 8.5% increase in capital expenditures (capex) to Rs 4,700 crore from April to July in the 2023-24 financial year. Investment capital utilization during this period is almost 100% of the incremental target of Rs 4,754 crore and 28.3% of the annual target for Fiscal Year 24 of Rs 16,600 crore.
Capital spending (capex) started at a slower pace in the first quarter when the company presented its spending plan at the start of the fiscal year. Then it gradually increased in the following quarters, Coal India explained.