Gujarat PSUs' market capitalization soars by Rs 5,000 crore in a day
GSFC stock prices rallied by 20% on Wednesday whereas GMDC went up by over 19.98% on the same day on BSE
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.
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.
