Omaxe Promoters To Take 90% Salary Cut, Forgo Dividend

Realty firm Omaxe Ltd today said that its promoters will take a salary cut of 90 per cent and also forgo their dividend, leading to an annual saving of Rs. 15 crore to be utilised for speedy delivery of projects.

Omaxe announced "their promoters will take a substantial salary cut, to the tune of 90 per cent from the current level and also forgo their share of the dividend".

Promoters decision is keeping in the mind the challenges faced by the real estate industry post demonetisation and implementation of RERA and GST, the company said.

"Omaxe is doing reasonably well, but there is no denying that these are challenging times. The industry is witnessing transformation never seen in the history. It will take few months for normalcy to return.

"In these times for the sector, everyone needs to do their bit. As the leader of the organisation, it is imperative for us to take lead. Hence, we have decided to take a substantial salary cut and also forgo dividend," Omaxe CMD Rohtas Goel said.

The resources would be used for growth purposes and speedy delivery of projects, he added.

"The austerity move by the promoters to adopt reduced salaries and foregoing their share of the dividend, the company will stand to conserve an amount of about Rs. 15 crore per annum," Omaxe said.

While announcing the company's fourth quarter results for 2016-17 fiscal on May 28, the board had recommended 7 per cent dividend per equity share.