Shares of Vadodara-based Gujarat State Fertilizers and Chemicals Ltd. (GSFC) gained over 4 percent on Friday after the company announced that it will seek approval for the dividend announement at its Annual General Meeting on September 22, 2023.

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GSFC, in May this year, had declared its highest-ever dividend of Rs 10 per share of face value of Rs 2 each.

Post the AGM, the dividend will be paid out to shareholders on or after September 28, 2023.

The AGM on September 22 will commence at 11 AM, GSFC said.

The company has fixed September 15 as the cut-off date to enable shareholders to exercise their right to vote by electronic means during the e-voting period on all resolutions set forth in the notice of 61st AGM.

In April this year, the Gujarat government made it mandatory for state PSUs to pay a minimum of 30 percent of net profit or five percent of net worth, whichever is higher, as dividend to shareholders, in-line with the regulation for central PSUs.

Moreover, all state PSUs with a net worth of at least Rs 2,000 crore and cash and bank balance of Rs 1,000 crore were mandated to exercise the option to buy back their own shares.

According to markets experts, the move aimed at making state PSUs more attractive to investors, while also helping these companies put their idle cash to good use.

Shares of GSFC are trading 3.4 percent higher at Rs 156.60. The stock has gained 10.3 percent on a year-to-date basis. The stock is also 21 percent away from its all-time high of Rs 198.8, which it hit in June last year.