Archive · 23 Jun 2025
DIPAM Secretary Outlines Strategy for Public Assets, Dividends
The government is changing how it handles investments in public companies.
They're focusing on making these companies more valuable, not just selling them off.
They want to share the profits with everyone, including regular investors.
Public sector stocks are considered a good investment, even if the market is uncertain.
The government plans to sell shares to the public in small amounts to let regular people invest.
The goal is to boost the value of these companies and help investors, especially with dividends.
They are working on selling more shares of LIC and are reviewing the future of loss-making government-owned companies.
DIPAM Secretary outlines the government's strategy for public assets.
The government is shifting away from fixed disinvestment targets, focusing on value creation.
Public sector stocks are seen as attractive hedges against market shocks due to dividends.
Retail investors will get a fair share in OFS through the green shoe option.
The government is committed to increasing LIC's market float.
- Who
- Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM).
- What
- Interview with DIPAM Secretary Arunish Chawla regarding the government's strategy for public assets, disinvestment, and dividend outlook.
- When
- FY26
- Where
- N/A
- Why
- To outline the government's strategy for public assets and its dividend outlook.
Government View
N/A
Disinvestment Strategy
Government View
Focus on creating value, not just revenue from sales.
N/A
Not Applicable
- DIPAM's Strategy Pillars
- Links corporate performance to dividend policy, connects dividend policy to market prices, resolves trade-offs between selling and holding, and aids in timing decisions.
- Dividend Distribution
- Public enterprises pay at least 30% of profits or 4% of net worth.
- Dividend Payout Research
- Public sector stocks distribute 10% more dividends than Nifty50 companies.
- Upcoming Sales
- Regular OFS in small tranches in FY26.
- Retail Investor Participation
- Green shoe option will be available for fair share.
- LIC Disinvestment
- 3.5% disinvestment has already been done and more is planned