Federal-Mogul Goetze (India) Ltd has announced a combined dividend of ₹94 per equity share, comprising an interim dividend of ₹7.50 and a special dividend of ₹86.50. According to a regulatory filing, this marks the company's first dividend declaration in 25 years - the last dividend was issued in August 2001 of ₹2.5 per share. The dividends will be paid on or before September 25, 2026, on equity shares with a face value of ₹10 each. As per CNBC TV18, the company's board declared these dividends at its board meeting held on Thursday, August 27. The company had previously traded ex-dividend on August 10, 2001 for the ₹2.50 per share dividend, with the last ex-rights trading occurring on September 17, 2007 and November 3, 2008 during these 25 years.
The record date for determining shareholders eligible to receive the dividend payout has been fixed for Friday, September 4, 2026. As reported by the company, shareholders whose names appear in the company's register or the depository records on the record date will be eligible for the dividends. The substantial payout represents a significant return to shareholders in the automotive components segment, marking a notable milestone for the company's dividend policy after the extended gap.
Federal-Mogul Goetze shares experienced a significant surge on Friday, rising as much as 10.5% to hit a fresh 52-week high of ₹602 on the BSE, surpassing the previous high of ₹578.50 touched on September 8, 2025. The stock opened with an upside gap and touched the intraday high during early-morning trading, significantly outperforming the broader market. At 10:50 AM, the stock was trading 9.8% higher at ₹598.55, compared to a 0.45% rise in the BSE Sensex. The sharp rise was primarily driven by the company's announcement of the substantial dividend payout, with the stock delivering strong returns in recent months including a 27% rally in the past week and 17.4% year-to-date growth. A combined 6.56 million equity shares changed hands on the NSE and BSE during the trading session.
Federal-Mogul Goetze has secured an interim stay from the Delhi High Court on a product label notice issued by the Food Safety and Standards Authority of India (FSSAI). The order, received on August 26, 2026, halts enforcement of the directive concerning alleged mislabeling. The High Court's interim order suspends immediate action arising from the notice while the writ petition remains before the court. Crucially, the court has allowed the company eight months to exhaust its existing stock bearing the descriptors 'electrolyte' or 'electrolyte drink' and to make required changes to the labels.
According to CareEdge Ratings, the Indian auto ancillary industry is expected to grow by around 8-9% in FY27 with its market size increasing from around ₹9.8 trillion in FY26 to ₹10.68 trillion in FY27. This growth is supported by healthy original equipment manufacturer (OEM) demand across major segments, increasing component content per vehicle, resilient replacement demand, higher localisation, and expanding global sourcing opportunities. The rating agency notes that the Indian auto ancillary industry is entering a sustained investment-led growth phase, supported by expanding domestic vehicle production and increasing value addition across the automotive supply chain. Total vehicle production increased from around 23 million units in FY22 to 34.7 million units in FY26, reflecting broad-based growth across vehicle segments.
