GMDC Dividend Payout of ₹302 Crore Accrues to Government of Gujarat
What happened
GMDC approved a dividend of ₹9.50 per equity share, resulting in a total payout of ₹302.10 crore. Of this amount, ₹223.55 crore will accrue to the Government of Gujarat, which holds 74% of GMDC’s equity. GMDC reported a standalone profit after tax of ₹990.81 crore, which is higher than the ₹687.92 crore reported in FY 2024-25.
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Why it matters
The dividend payout follows GMDC’s commitment to a progressive dividend policy for State public sector enterprises. The current year’s profit included an exceptional gain of ₹522.65 crore derived from GST rate rationalization on lignite.
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Who's involved
- Government of GujaratThe state government that receives the dividend accrual from GMDC.
- GujaratThe state benefiting from the dividend accrual from GMDC’s assets.
- OdishaThe state where GMDC operates its coal blocks.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Government of GujaratSpeculative
The Government of Gujarat could see an increase in state revenue due to the ₹223.55 crore cash inflow.