Six central PSUs to come up with Initial Public Offerings
The central government last week said it has decided to list six central public sector enterprises, including THDCIL, TCIL and RailTel, on stock exchanges and permitted KIOCL to come out with a followon public offer
The central government last week said it has decided to list six central public sector enterprises, including THDCIL, TCIL and RailTel, on stock exchanges and permitted KIOCL to come out with a follow-on public offer.
The decision was taken by the Cabinet Committee on Economic Affairs (CCEA) to list six central public sector enterprises (CPSEs) on the stock exchanges through initial public offerings (IPO), Law Minister Ravi Shankar Prasad said while briefing the media.
The CCEA in its meeting held on Thursday decided that the six CPSEs will go in for IPOs and one for a follow-on public offer (FPO). The listing of the CPSEs on exchanges would unlock their value and encourage investor participation, the minister added.
The six state-owned firms to come up with IPOs are Telecommunication Consultants (India) Ltd (TCIL), RailTel Corporation of India Ltd, National Seeds Corporation Ltd (NSC), THDC India Ltd, Water & Power Consultancy Services (India) Ltd (WAPCOS) and FCI Aravali Gypsum and Minerals (India) Ltd (FAGMIL).
While, Kudremukh Iron Ore Company (KIOCL) will come up with an FPO. Prasad further said the Alternative Mechanism -- comprising the finance minister, road transport and shipping minister and the minster of the concerned administrative ministry -- has been empowered to decide on the extent, mode of disinvestment, pricing, and time of listed CPSEs (including CPSEs to be listed in future).
Later, an official release said the scope of eligibility criteria for listing of CPSEs has been expanded. CPSEs with positive net worth and net profit in any of the immediately three preceding financial years shall be eligible for listing on the stock exchanges, it added.
Prasad, however, did not disclose whether the IPOs and FPO would happen within the current financial year. According to the latest data, the government has realised Rs 34,142.35 crore as disinvestment proceeds so far, against the Budget target of Rs 80,000 crore during the current financial year ending March 2019.
Total disinvestment proceeds during 2017-18 was Rs 1,00,056.91 crore as compared with the revised target of Rs 1,00,000 crore. TCIL is an engineering and consultancy company under the administrative control of the Department of Telecommunications.