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Miniratna Companies in India: Which Ones Are Listed & How Investors Access Them

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Nupur Wankhede

Table of Contents

Miniratna companies are a category of public sector undertakings (PSUs) in India recognised for their consistent profitability and operational autonomy. The classification of PSUs into Miniratna, Navratna, and Maharatna helps the government allocate autonomy and investment limits based on performance and financial health. Investors often find Miniratna companies interesting due to their backing by the government and their consistent track records. However, it's essential to understand their classifications, listing status, and the appropriate way to invest without making assumptions about guaranteed returns or performance.

What Are Miniratna Companies

Miniratna PSUs are government-owned enterprises that have shown profitable operations and meet specific eligibility conditions defined by the Government of India. These companies are further classified into two categories:

Miniratna Category-I

These are PSUs that:

  • Have made profits continuously for the last three years or more

  • Have earned a pre-tax profit of ₹30 crore or more in at least one of the three years

  • Have a positive net worth

These companies enjoy enhanced autonomy, allowing them to invest up to ₹500 crore or an amount equal to their net worth, whichever is lower, without seeking government approval.

Miniratna Category-II

These companies:

  • Have made profits for the last three consecutive years

  • Have a positive net worth

However, their investment autonomy is limited to ₹300 crore or up to 50% of their net worth, whichever is lower.

How Are Miniratnas Different from Maharatnas and Navratnas

The classification is based on performance metrics, financial strength, and operational independence. Here's a comparison:

Category Investment Autonomy Key Criteria

Maharatna

Up to ₹5,000 crore or 15% of net worth

Large-scale profits and global presence

Navratna

Up to ₹1,000 crore or 15% of net worth

High net profit, high turnover

Miniratna I

Up to ₹500 crore or net worth

Consistent profits (₹30 Cr+ in a year)

Miniratna II

Up to ₹300 crore or 50% of net worth

Three years of profitability

The autonomy provided helps these companies make faster decisions and improve operational efficiency.

Which Miniratna Companies Are Listed

Several Miniratna companies are publicly listed on Indian stock exchanges. These listings provide investors with an opportunity to participate in their growth through equity ownership.

Some examples (illustrative only, not recommendatory):

  • Rail Vikas Nigam Ltd (RVNL)

  • RITES Ltd

  • Cochin Shipyard Ltd

  • Bharat Dynamics Ltd

  • MSTC Ltd

These entities operate in critical sectors such as railways, defence, shipping, and infrastructure. However, listing does not imply guaranteed performance. Investment decisions should always be backed by analysis, not government ownership alone.

Note: The securities quoted are for illustration only and are not recommendatory.

Steps Involved in Buying Shares of Listed Miniratnas

Buying shares of listed Miniratna PSUs follows the same general process as buying shares of any publicly listed company in India:

Step 1: Open a Demat Account

A demat account is essential to hold shares in electronic form. One can open a demat account through various stockbrokers or platforms that are registered with SEBI.

Step 2: Complete KYC Formalities

Investors must complete KYC requirements, including submission of documents like PAN, Aadhaar, and bank proof.

Step 3: Fund the Trading Account

Before placing any order, transfer funds to your linked trading account.

Step 4: Search for the Miniratna PSU

Use your broker’s app or trading platform to search for the stock name or symbol.

Step 5: Place the Buy Order

Decide the quantity and the price (market or limit order) and place the order. Once executed, the shares will reflect in your demat account.

Risks of Investing in Miniratna Companies

While government ownership provides a perception of stability, it is essential to understand the potential risks:

Sector Concentration

Many Miniratnas operate in sectors heavily influenced by government policies, such as defence, shipping, and railways. Changes in policies, budgets, or reforms can impact earnings.

Market Volatility

Being publicly traded, these stocks are not immune to general market risks and volatility. Stock performance depends on a mix of internal performance and broader market sentiment.

Limited Growth Compared to Private Sector

While PSUs offer consistency, their pace of innovation or agility may not match that of private counterparts.

Common Features Observed in Listed Miniratnas

Listed Miniratnas often exhibit these traits, noted by analysts and market observers:

  • Stable Dividends: Many PSUs distribute regular dividends as part of their profit-sharing practices.

  • Operational Track Record: Continuous profitability for at least three years is a base requirement.

  • Government Support: Miniratnas may benefit from government orders or subsidies in infrastructure or manufacturing.

  • Transparency and Regulation: Their operations are subject to public audits and regulatory compliance, improving governance standards.

However, investors must evaluate these alongside other financial and strategic parameters before making any decisions.

Conclusion

Miniratna companies represent a unique class of public sector enterprises that balance profitability with strategic national interests. While some are listed and accessible to retail investors, it is essential to treat them like any other stock—requiring research, analysis, and awareness of market risks. Government ownership and stable dividends may offer appeal, but these must be evaluated in the context of overall portfolio goals and risk tolerance.

Disclaimer

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.

FAQs

What qualifies a company to become a Miniratna?

A company qualifies as a Miniratna by maintaining consistent profitability for three years and having a positive net worth. For Category-I status, the company must also record a pre-tax profit of at least ₹30 crore in any one of the last three years.

Miniratna companies are not all listed on stock exchanges. Some are publicly traded, while many remain unlisted and fully owned by the Government of India.

Unlisted Miniratna companies cannot be directly invested in through stock exchanges, as their shares are not available for public trading.

Investment in government-owned companies carries a perception of stability due to state backing, but actual safety and returns depend on market conditions and the financial health of the individual company.

Miniratna companies do not guarantee dividend payments. While many regularly distribute dividends, the decision depends on their profitability and the approval of the company’s board.

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Hi! I’m Nupur Wankhede
BSE Insitute Alumni

With a Postgraduate degree in Global Financial Markets from the Bombay Stock Exchange Institute, Nupur has over 8 years of experience in the financial markets, specializing in investments, stock market operations, and project management. She has contributed to process improvements, cross-functional initiatives & content development across investment products. She bridges investment strategy with execution, blending content insight, operational efficiency, and collaborative execution to deliver impactful outcomes.

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