PSUs(Public sector Undertakings) are government-owned companies in India, in which 51% or more share capital is owned by governments. However, it can be the central or state government, presently in India there are 90 listed PSUs.
All listed PSUs will contribute Rs1 lakh crore in dividends in FY23, with the government owning almost 61 percent as of March 2023.
Only five Nifty 50 companies account for 56% of the total dividend declared for the year, worth Rs 56,502 crores.
Coal India, stands first in the highest dividend-yielding stock followed by ONGC, Power Grid Corporation, SBI, and NTPC standing fifth in the rank.
| High Dividend Paying PSU’s | FY23(Rs Crores) |
| Coal India | 14,945 |
| ONGC | 14,153 |
| Power Grid Corp | 10,289 |
| SBI | 10,085 |
| NTPC | 7,030 |
Source: Bloomberg
The country’s largest government-owned coal producer, Coal india ltd has paid a dividend of Rs 4 per share, while India’s 71% domestic crude oil explorer ONGC has declared a dividend of Rs 11.25 per equity share for the fiscal year ended March, followed by NTPC at Rs 3 and Power Grid Corporation at Rs 4.75 per share.
More interestingly, India’s Largest bank, SBI net profit rose by Rs 50,000 crore in FY 23, and declared a dividend per share (DPS) of Rs 11.30, meanwhile Coal India’s Net profit grew by 62% in FY23 from FY22.
Getting higher dividends from corporates and RBI will give some cushion to the government for meeting its higher capex spending target without impacting its fiscal deficit goals.
As Public sector undertaking companies grow based on revenue and profit, they directly contribute to the development of the national economy by establishing job opportunities, industrial frameworks and collaborations, infrastructure development, and export promotion.
According to the latest shareholding pattern, Foreign institutional investors (FIIs) have significant stakes in high dividend-yielding companies such as SBI (9.89), NTPC (15.61), Power Grid (32.3), ONGC (7.97), and Coal India (7.84).
Written by Omkar C
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