In the modern innovation-driven world, lea~ing and the command of intellectual capital have become the key success factors of international competitiveness. New technologies based on this intellectual capital are the key in creating the more sophisticated product and the business of. the future, which will be able to improve the quality of the environment. The research objective is to evaluate the performance of Intellectual Capital of the Public Sector Enterprises in India to maximize return to the shareholders. There are nine hypotheses have been formulated and those have been tested by correlation and regression analyses. Ten year data, i.e. from 2001-02 to 2010-2011 for 50 numbers of Public Sector Enterprises listed on Bombay Stock Exchange have been taken for analysis. Data are taken from the annual reports, BSE website, direct contact, Prowess database of CMIE etc. There are eight variables have been taken for study. At the end conclusion, implications, limitation and future direction of research is provided.