Gujarat State PSUs surge on new state policy on dividend, buy back

Gujarat Mineral Development

26/04/2023 07:20

** Shares of most Gujarat State public sector undertakings
jumped on state govt policies for dividend, buy back, bonus and
splitting of shares    
    ** Barring Gujarat Gas Ltd  GGAS.NS , all the other six
listed state PSUs of Gujarat  surged between 7% and 20%
    ** Gujarat Industries Power Ltd  GJIP.NS  up 20%; Gujarat
State Fertilisers and Chemicals Ltd  GSFC.NS  and Gujarat
Mineral Development Corp Ltd  GMDC.NS  rise over 15%
    ** Other state PSUs up between 7% and 10%
    ** Uptick after the state on Tuesday mandates 30% of profit
after tax or 5% or net worth as the minimum threshold of
dividend declared for shareholders 
    ** Every state PSU with net worth of 20 bln rupees and cash
and bank balance of 10 bln rupees asked to exercise the option
of share buyback
    ** PSUs mandated to split shares when market price of the
company's shares exceeds 50 times of its value
    ** PSUs to issue bonus shares if their defined reserves and
surplus is equal to or more than 10 times of its paid up share
capital    
    ** "There is more clarity to minority shareholders and scope
to improve governance," says Nilesh Shah, managing director at
Kotak Mahindra Asset Management
    

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))