The board of 3M India Ltd, the Indian subsidiary of US-based company 3M has announced an interim special dividend for its shareholders. This dividend is a whopping 8500% of the face value of its shares. Its shares were trading at ₹ 23,800.00 apiece at 11:32 AM on Friday.
The company informed the bourses that in its meeting held on November 09, 2022, its board of directors declared an interim (special) dividend of ₹ 850 per equity share of face value ₹ 10 each, for the financial year 2022-23. This takes the company’s dividend yield to a good 3.57%.
Its board of directors have fixed November 22, 2022, as the record date for determining the entitlement of the shareholders for the payment of the aforesaid dividend. This dividend shall be paid/ dispatched to the shareholders on or before November 09, 2022.
3M India is a diversified science and technology company. It manages its operations in four operating segments: safety & industrial, transportation & electronics, health care and consumer.
It is a large-cap company with a market capitalization of ₹ 26,545 crores. However, its shares have underperformed in the past year as they gave negative returns of 10.88%. It has a return on equity of 13.29% and an ideal debt-to-equity ratio of 0.01. Its shares are trading at a price-to-equity ratio (P/E) of 81.39, which is multiple times higher than the Industry P/E of 12.16, therefore the stock might be overvalued.
Written by Simran Bafna
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