The present study attempts to investigate the phenomenon of special dividend announcements made by Indian corporate sector which has not been analysed so far by the researchers. Using the data of BSE listed firms during Jan. 2000 – Mar. 2017, it was found that most of these announcements were made in the month of May in celebration of Jubilees and anniversaries with token amount of dividends. The analyses of these announcements using Event Study methodology with market model revealed that these announcements are predictable and their effects vanishes immediately after the announcement. The shareholders of these firms experienced 4 percent marginal return cumulated around the announcement date. This study supplements the Indian experience to the limited global literature on the issue of special dividend payments.