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The total market capitalization of 63 listed CPSEs (including subsidiaries) as on March 31, 2023 was Rs 16.85 lakh crore. The market capitalization of 66 listed CPSEs increased to Rs 37.23 lakh crore as on March 31, 2024.
It was at its peak around July-August 2024. On July 18, it was Rs 45.88 lakh crore for 66 PSEs. The total market capitalization of all 82 listed PSUs, including the market capitalization of 16 financial sector PSUs, stood at Rs 72.46 lakh crore, including Rs 26.58 lakh crore.
On September 30, 2024, the total market capitalization came to Rs 69.49 lakh crore. On January 1, 2025, the total market capitalization including newly listed NTPC Green Energy declined to Rs 63.53 lakh crore. In a span of six months, the market capitalization of CPSEs declined by nearly Rs 9 lakh crore.
The falling market capitalization also impacted the value of the government stake.
The value of the government stake declined from Rs 27.89 lakh crore on July 18, 2024, to Rs 23.02 lakh crore on January 1, 2025 – a decline of more than 21 per cent of the stake value. The value of the government’s stake in financial PSEs also declined – from Rs 20.25 lakh crore on July 18, 2024, to Rs 17.12 lakh crore on January 1 – a decline of Rs 3.14 lakh crore on January 1, 2025, or about 18 per cent of its value.
The decline of nearly Rs 8 lakh crore in a little more than five months should worry the government.
Government spokespersons sometimes make big claims about increasing dividend receipts.
Dividend yields have actually increased over the past three years. The government received Rs 39,558 crore in dividend receipts from all PSUs in 2020-21. Dividend receipts increased to Rs 59,293 crore in 2021-22.
Dividend receipts stagnated thereafter. In 2022-23, dividend receipts were Rs 59,532 crore, almost at the level of 2021-22. Dividend receipts increased by nearly 7 per cent to Rs 63,749 crore in 2023-24.
According to the DIPAM website, the government has received Rs 48,376 crore as dividend in 2024-25 till December, which is about 75 per cent of the dividend receipts for 2023-24. Dividend receipts in 2024-25 are likely to be close to what the government received in 2023-24.
However, it is misleading to compare dividend receipts of Rs 63,749 crore in 2023-24 with Rs 39,558 crore in 2020-21. To make a good comparison, we need to take into account dividend yields in the pre-Covid and pre-banking-crisis periods.
The government had received a dividend of Rs 57,425 crore in 2013-14 and Rs 50,701 crore in 2017-18. Compared to dividend receipts of Rs 57,425 crore in 2013-14, dividend receipts of Rs 63,749 crore in 2023-24, at a CAGR of only 1 per cent per annum after 10 years, is no great achievement.
