Coal India shares tank nearly 6%; top loser on Sensex

Shares of Coal India Ltd tumbled nearly 6% amid massive selling by investors as the stock went ex-dividend.

The stock fell by 5.68% to Rs 372.25 on the BSE. The blue-chip scrip was the biggest loser among the 30-Sensex constituents.

At the NSE, it tumbled 5.5% to Rs 373.

Marketmen said profit-booking pulled down the stock.

"Board of Directors of the company at its meeting held on February 27, 2015, approved payment of interim dividend for the financial year 2014-15 at Rs 20.70 per share of the face value of Rs 10," the company had said in a filing to the BSE last month.

The date of payment is on March 10, 2015, it had said.

Coal India Ltd had informed BSE last month that the company has fixed March 4, 2015 as the record date for the purpose of payment of interim dividend on equity shares for the financial year 2014-15, if declared by the board.

The issuing company fixes a particular date which is termed as record date when the investor must own shares in order to be eligible to participate in events like receiving dividend, bonus shares.

An ex-dividend is classification of trading shares when a declared dividend initially belongs to the seller rather than the buyer.