FinMin asks profitmaking PSUs to think of stock split

The finance ministry has directed all profit-making public sector undertakings to use surplus cash to buy back shares and pay handsome dividend, besides considering issuing bonus shares or going for stock split. The Department of Investment and Public Asset Management (DIPAM) in a letter to Central Public Sector Enterprises (CPSE) has asked them to pay dividend at the rate of 30% of net profit or 5% of the networth, whichever is higher.