Cash-rich companies may step up payouts to shareholders: Analysts

Bajaj Auto will distribute up to 90 per cent of its annual profit as dividend

After Bajaj Auto introduced a new dividend policy, analysts expect more cash-rich companies to either step up dividend payout or share buyback, given the growing cash pile of India Inc.
 
The country’s top listed companies, excluding banks, non-banking financial companies (NBFCs) and insurance firms, were sitting on cash and equivalent worth Rs 11.2 trillion. This is equivalent to nearly 30 per cent of their net worth at the end of FY20.
 
On Thursday, Bajaj Auto said it will now distribute up to 90 per cent of its annual profits as equity dividend to shareholders.
 
The company’s new