Windfall for Sulzer India share holders

PUNE: Sulzer India Ltd, a subsidiary of the Swiss capital goods manufacturer, the Swiss franc (CHF) 1800 million Sulzer group, has declared a dividend of 400 per cent at a meeting of its board of directors on February 10.
While 50 per cent, that is Rs 5 per share of face value Rs 10, is dividend for 2004, SIL following a calendar year, the balance 350 per cent, amounting to Rs 35 per share, is an interim dividend for 2005.
Subodh Nadkarni, managing director, SIL and president designate, Asia-Pacific and Australia region, said the 350 per cent was part of the realisations from the sale of its compressor business. It may be recalled SIL divested this business late last year.7
"We received CHF 6 million from the sale of that business. Since we do not require the funds for deployment, we are returning them to share holders. We have only retained the amount required to pay tax, the rest is being distributed to share holders since the company does not need it immediately. The Indian public share holding in SIL is 20 per cent, amounting to 3500 Indian share holders," Mr Nadkarni said.