This S&P BSE Smallcap Stock is a PSU with 74% being held in the President of India’s Portfolio has announced Rs. 269 crore dividend toward the Gujarat Government, in the name of Gujarat Chief Minister.
The company has a market cap of Rs. 13,243 crore and is 4% away from its 52 week high, trading at Rs. 416.45 versus Rs. 416.20 at previous close. The company has a strong Piotroski F score of 7 and a net profit CAGR of 102 over the last 3 year period.
In a filing dated 16th October 2023, Gujarat Mineral Development Corporation Ltd (‘GMDC”), a leading mining PSU Enterprise and the largest lignite seller in the country presented a substantial dividend cheque of Rs 269.44 Crore to the Hon’ble Chief Minister of Gujarat. This momentous occasion solidifies GMDC’s commitment to advancing the state’s forward-looking initiatives and bolstering prosperity for shareholders in public sector undertakings (PSUs).
The Gujarat government’s visionary policy, tailored to elevate the valuation of the state’s PSUs, stipulates a minimum dividend of 30% of profit after tax or 5% of net worth, whichever is higher, as the minimum level of dividend to be declared for shareholders. The Gujarat government’s 74% share in GMDC played a pivotal role in driving the corporation towards the extraordinary achievement of presenting a dividend cheque equivalent to 30% of GMDC’s net profit for the fiscal year 2022-23.
On this strategic move, Shree Roopwant Singh, IAS, Managing Director, GMDC said, “GMDC takes immense pride in aligning with Gujarat’s progressive policies. The increased dividend reflects our commitment to creating enduring value for our shareholders. This strategic move exemplifies our dedication to fostering economic growth and prosperity in collaboration with the visionary policies set by the Government of Gujarat.”
The Gujarat Mineral Development Corporation Limited is a prominent Indian mining company. It is a state-owned, publicly traded company run by the Gujarati government. There are five active lignite mines owned by the state that are situated in the Kutch, South Gujarat, and Bhavnagar regions. It is said to be the the biggest commercial seller of lignite in the nation.
Written by Sandeep R
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