Saturday, August 15, 2026

Government companies will offer 10% higher dividends in FY26: DIPAM Secretary

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Retail investors can expect increased dividend income from government-owned companies despite market fluctuations in the coming financial year. According to Aruneesh Chawla, Secretary, Department of Investment and Public Asset Management (DIPAM), government firms are working towards value creation, particularly for retail investors.In an interview with CNBC AwaazChawla revealed that public sector companies distributed approximately ₹1.05 lakh crore in dividends last year. This year, the figure has risen to around ₹1.4 lakh crore. Looking ahead to FY26, he stated that dividends would increase by another 10%.
For retail investors, his key advice remains clear: allocating a portion of their portfolio to government companies ensures a steady dividend income, unaffected by market volatility.
The long-awaited divestment of IDBI Bank is progressing smoothly, with the due diligence process now complete and data-related issues resolved. Chawla assured that updates on the sale process would be available within the next three to four months. While an exact date for the divestment cannot be provided yet, he confirmed that LIC would proceed with selling its stake as per plan.The divestment of Shipping Corporation of India (SCI) and BEML is also on track, though Chawla refrained from making specific comments on their progress.

Also Read: Bonus, Dividend, Stock Split Alert: Find out which shares are in focus this week before their record date

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