ONGC shares under radar after dividend declaration, plan to invest Rs 1 lakh crore by 2030 in green energy

Shares of state-owned Oil and Natural Gas Corporation (ONGC) were under radar on Friday, a day after the company declared a dividend of Rs 0.50 per equity share and disclosed the plan to invest in renewable energy.

The company’s board, on Thursday, approved a final dividend of Rs 0.50 each for each equity share of Rs 5 face value for the financial year 2022-23. The 10 per cent final dividend will be paid out on September 9, 2023. The record date of the dividend has been set as August 18, 2023 and the ex-date for the dividend was August 18, 2023.

The investors who had held ONGC stocks as on August 18 will be eligible for receiving the dividend.

ONGC past dividends

The government-run company has a dividend yield of over 6 per cent. This means that for every 100 shares of ONGC that you hold, you will receive a dividend of around Rs 6. The company previously paid out Rs 4 interim dividend per share in February, Rs 6.75 interim dividend in November 2022, and Rs 3.25 dividend in August 2022. So investors who had held onto 100 ONGC shares since August 2022 could have earned Rs 1,450 in dividends. In the same time period of one year, the share price of ONGC has increased by over 26 per cent.

Investment to scale up renewable energy

The energy company also announced that it will be investing Rs 1 lakh crore (Rs 1 trillion) by the end of the decade into low-carbon energy options like renewable and hydrogen energy. The Central PSU aims to transform into a low-carbon energy company. ONGC added that it had reduced its emissions by 2.66 per cent in FY2023. The company is looking to increase its renewable production portfolio to 10 GW by 2023.

ONGC shares were trading for Rs 175.70 a piece, down 1.1 per cent, on BSE at 3:12 PM.