Gujarat PSUs' market capitalization soars by Rs 5,000 crore in a day

The new policy announcement on higher dividends to be doled out by state-owned public sector undertakings in Gujarat proved to be a boon in disguise for these companies as their stocks registered a bull run in the Indian equity markets, reports Parag Dave.

Advertisment

1/38

2/38

3/38

4/38

5/38

6/38

7/38

8/38

9/38

10/38

11/38

12/38

13/38

14/38

15/38

16/38

17/38

18/38

19/38

20/38

21/38

22/38

23/38

24/38

25/38

26/38

27/38

28/38

29/38

30/38

31/38

32/38

33/38

34/38

35/38

36/38

37/38

38/38

With share prices going up, the market capitalization of seven Gujarat's PSUs increased by Rs 5,000 crore in a single day on Wednesday.

GSFC stock prices rallied by 20% on Wednesday whereas GMDC went up by over 19.98% on the same day on BSE. Even share price of GIPL went up by 20%.

State PSU companies registered a bull run in the stock market on Wednesday due to a new policy implemented by the Gujarat government.

Under the new policy, these companies must declare at least 30% of their profit after tax or 5% of their net worth as dividends for shareholders.

During the trading session on Wednesday, the stock price of GSFC and GIPCL rose by 20% in a single day, while GMDC's stock price increased by 19.98%.

According to research analyst Hitesh Somani, the Gujarat government has introduced a new policy on bonuses, dividends, stock splits, and share buybacks that could lead to better governance and more liquidity for Gujarat PSU companies.