Government asks PSUs to reward shareholders: Report

The government has asked public sector units (PSUs) with a stock price higher than the book value to reward shareholders, ET NOW reported quoting sources.

The report further added that up to 8 companies including Coal India, NTPC, NMDC and Engineers India may consider buyback of shares soon.

Shares of Coal India traded 2.29 per cent higher at Rs 114.10 after the report, while NTPC was up 3 per cent, NMDC (0.96 per cent) and EIL (up 0.89 per cent). On the other hand, the benchmark BSE Sensex was up 0.71 per cent at 40,268.

The government is looking to boost divestment proceeds via buybacks. It has asked public sector units to either buyback shares or spend on capital expenditure, ET NOW reported.

In the year FY21, Department of Investment and Public Asset Management (DIPAM) has so far raised Rs 5,695.63 crore against the target of Rs 2.1 lakh crore. Besides, dividends from non-financial PSUs have been budgeted at Rs 65,747 crore during the ongoing financial year.