Coal India shares gained more than 5 per cent to hit a two-month high in early trade on Wednesday, thanks to the announcement of an interim dividend by the company.

The state-run miner on Tuesday announced that it would pay shareholders a special dividend of Rs 29 per share in the current financial year.  The special dividend will be paid from 25th of January.

The biggest shareholder - the government that owns 90 per cent stake in the company, will receive Rs 16,485.71 crore as dividend.  The company has set aside Rs 18,317 crore to pay in dividend for FY2013-14.

Overjoyed by the announcement, investors pushed the shock's value up by as much as 5.2 per cent to Rs more than 307 apiece.  It surpassed the Rs 300 level for the first time since November 7, 2013.  As of 09.30 a. m., Coal India shares traded 2.5 per cent higher at Rs 295.95 apiece on the National Stock Exchange.  Coal India was the biggest gainers on the 50-share Nifty benchmark.

Last financial year, Coal India had paid a total dividend of Rs 14 per share.

Coal India Ltd, which is the world's largest coal miner by production, is a cash-rich state-run firm.  At the end of September quarter of 2013, it had cash balances of nearly Rs 64,270 crore.