Gujarat Titans! State PSUs rally up to 17% on new payout policy

Gujarat state public sector undertakings (PSUs) shares surged up to 17% after the state government implemented a new policy regarding minimum levels of dividend distribution and bonus shares, with the aim of adding to the valuation of Gujarat's PSUs. The state government has made it mandatory that a minimum 30% of profit after tax or 5% of net worth, whichever is higher, must be declared as a minimum level of dividend; this policy aims to bring further clarity to minority shareholders and improve governance.