Over 20 loss-making companies plan to pay dividends in FY24, using past profits and free reserves, pending shareholder approval.
Gujarat Alkalies, Kolte Patil, Mahindra Lifespace, RHI Magnesita, Shreyas Shipping, Hinduja Global, Bajaj Healthcare, and Arvind Fashions are among the firms.
Promoters with stakes between 20% and 75% stand to benefit significantly from these dividend payouts, reaping substantial returns.
Companies can pay dividends based on standalone profits despite overall losses, with no restrictions under the Companies Act.
Kolte Patil declared a ₹4 per share dividend despite a ₹71.26 crore loss. Here, promoters held a 69.45% stake & gained around ₹21.11 crore.
Other firms paying dividends include Nahar Spinning Mills, Flex Foods, Fermenta Biotech, Aksharchem (India), Manali Petrochemicals, Polyplex, and Nahar Poly Films.