Gujarat announces new policy for dividend distribution, bonus shares for government companies

- Advertisement -

The Gujarat government has recently introduced new regulations mandating minimum requirements for dividends, issue of bonus shares, buybacks, and share split for the state PSUs.

These guidelines apply to all corporate bodies where the government of Gujarat and the government-controlled body corporate have controlling interest.

The state PSUs must offer a minimum dividend of 30% of profit after tax, or 5% of net worth, whichever is higher. In addition, every state PSU with at least ₹2,000 crore net worth and cash and bank balance of ₹1,000 crore will have to exercise the option of buyback of its own shares.

- Advertisement -

The PSUs are also required to issue bonus shares to shareholders if they have defined reserves and surplus equal to or more than 10 times their paid-up equity share capital. Furthermore, the PSUs are mandated to split their shares where the market price or book value of the shares exceeds 50 times its value, provided the existing face value of the share is more than ₹1.

The guidelines aim to comprehensively address the capital restructuring needs of PSUs, as per the State government statement.

- Advertisement -

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More News...

Latest

Canara Bank Chief Manager arrested in Rs 1.30 crore fraud case

Canara Bank Chief Manager arrested in Rs 1.30 crore fraud case

Flipkart partners with Axis Bank to launch its own UPI service

Flipkart partners with Axis Bank to launch its own UPI service

High Court Judge gets only Rs.15000 pension per month

High Court Judge gets only Rs.15000 pension per month

Maharashtra allows revised NPS pension for Government Employees

Maharashtra has revised NPS pension for Govt Employees

Bank Employees protest against Outsourcing and Privatization of Banks

Bank Employees protest against Outsourcing and Privatization of Banks

SBI Manager arrested for stealing Rs 3 crore Gold from customer’s Locker

SBI Manager arrested for stealing Rs 3 crore Gold from customer's Locker

UPI Data: Rs 18.28 lakh crore UPI transactions done in February, Check full report

UPI Data: Rs 18.28 lakh crore UPI transactions done in February, Check full report

Record Broken: RBI handles 4.1 crore NEFT transactions in a day

Record Broken: RBI handles 4.1 crore NEFT transactions in a day

5 Day Banking and Salary Hike for Bank Employees expected in June

Good news for Bankers! 5 Day Banking may be introduced in June

Banks will open on Sunday and other holidays for KYC in Chhattisgarh

Banks will open on Sunday and other holidays for KYC