The Department of Investment and Public Asset Management (DIPAM) has reaffirmed its commitment to driving value creation through Public Sector Enterprises (PSEs) in FY26, following a historic dividend performance in the previous year.
In FY25, Central Public Sector Enterprises (CPSEs) distributed a record Rs 1.50 lakh crore in dividends.
Furthermore, the government received Rs 740.17 billion in dividends from public sector undertaking stocks throughout the period.
Despite accounting for just 10% of total market capitalization, CPSEs contributed approximately 25% of all dividend payouts, underscoring their growing role in shareholder value delivery.
DIPAM secretary stressed that its focus on value creation through PSEs will continue into FY26, and encouraged greater market participation in high-performing public sector stocks. Fund managers have been urged to consider PSEs more actively in their portfolios, given their consistent financial performance, strong balance sheets, and high dividend yield.
DIPAM also emphasized the importance of participation from retail investors, senior citizens, and minority shareholders in strengthening the governance and growth trajectory of listed PSEs. Their engagement, it noted, plays a vital role in long-term value creation.
In a key message to the broader corporate sector, DIPAM stated, “Nudge private corporations to declare fair dividends to their minority shareholders.” The department called for more equitable practices across the board to ensure that all classes of investors receive a fair share of profits.Highlighting its larger goal, DIPAM noted the need to “make stock markets a better place for our investors”, by fostering transparency, rewarding shareholder trust, and driving sustainable value across sectors.
