Business

DIPAM Champions PSU Stocks As Dividend Powerhouses; Urges Private Sector To Prioritize Minority Investors

In a striking revelation, the Department of Investment and Public Asset Management (DIPAM) unveiled that Central Public Sector Enterprises (CPSEs), despite constituting a mere 10% of India’s total market capitalization, contributed a staggering 25% of all dividends in FY25—a record ₹1.5 lakh crore.

The government’s share alone surged to ₹74,016 crore, up from ₹63,748 crore the previous year.

“These aren’t just numbers; they’re a testament to the untapped potential of PSUs in democratizing wealth,” declared DIPAM Secretary Arunish Chawla, urging mutual funds to recalibrate portfolios to include these ‘hidden gems’.

Mumbai Mission: DIPAM To Pitch PSUs As Pillars Of Stability

Chawla’s upcoming rendezvous with top mutual fund houses in Mumbai aims to dismantle entrenched biases against PSU stocks.

“Why should retail investors, seniors, and minority stakeholders miss out on PSUs’ consistent 30% dividend payout ratio—nearly 50% higher than private sector averages?” he questioned.

The pitch is clear: PSUs offer not just stability but ‘stochastic dominance’ over Nifty 50 peers in shareholder returns.

Private Sector Called Out For Dividend Disparities

In a rare admonition, DIPAM pressed private corporations to mirror PSUs’ equitable dividend practices.

Chawla noted that while CPSEs must share 30% of profits, private firms barely share 20%, shortchanging minority investors.

The message was unambiguous: “Fair dividends aren’t charity—they’re the cornerstone of market integrity.”

IDBI Bank Disinvestment: A Symphony Of Precision Amid Market Turbulence

Parallel to the dividend discourse, DIPAM is advancing the strategic sale of IDBI Bank with military precision.

Asset valuers are locked in, virtual data rooms hum with activity, and the share purchase agreement inches toward finality.

“We’re calm in choppy waters,” Chawla quipped, hinting at a possible H1FY26 closure for the 61% stake sale (30.48% by GoI, 30.24% by LIC). The market responded instantly—IDBI Bank shares leapt 3%, a nod to investor confidence.

As DIPAM redefines market ethics, its twin agenda—PSU empowerment and private sector accountability—could herald a new era where every investor, big or small, shares the fruits of India’s growth story.

Also Read: India’s Pharma Market Grows 8.4% In FY25, Boosted By Chronic Therapies & New Drug Launches

Khalid Raza Khan

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