Gujarat Industries Power Company Ltd (GIPCL) (Rs 83.65), Gujarat State Fertilizers & Chemicals (GSFC) (Rs 139.20) and Gujarat Alkalies & Chemicals Ltd. (GACL) (Rs 687.55) rallied up to 8 per cent each.
Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) (Rs 567.70), Gujarat State Petronet (GSPL) (Rs 280.70) and Gujarat Gas (Rs 465) were up in the range of 1 per cent to 5 per cent. In comparison, the S&P BSE Sensex was down 0.03 per cent at 60,113 at 09:21 AM.
Gujarat has mandated a minimum of 30 per cent of profit after tax (PAT) or 5 per cent of net worth, whichever is higher to be a minimum level of dividend declared for shareholders. However, only the minimum level and maximum permissible level of dividend should be declared.
Also Read : Stock Market LIVE: Q4 results, global cues to sway indices; SGX Nifty slips
For the buyback of shares, every state PSU having a net worth of at least Rs 2,000 crore and cash and bank balance of Rs 1,000 crore have been mandated to exercise the option to buy back their own shares. In the case of bonus shares, state PSUs that have defined reserve and surplus equal to or more than 10 times their paid-up equity share capital are required to issue bonus shares to their shareholders.
In case of splitting of shares, Gujarat has mandated splitting of shares where the market price or book value of state PSUs’ shares exceeds 50 times of its value, provided its existing face value of a share is more than Re 1.
Within the metal and mining space this development augurs well for the shareholders of GMDC, according to ICICI Securities.
First Published: Apr 26 2023 | 9:38 AM IST