Cabinet nod to list 11 PSUs flags off disinvestment for 2017-18 | business-news | Hindustan Times
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Cabinet nod to list 11 PSUs flags off disinvestment for 2017-18

The listing of companies will be through public offer of shares upto 25% of Government of India’s shareholding, which may include offer of fresh shares for raising of funds from market.

business Updated: Apr 12, 2017 20:39 IST
Raj Kumar Ray
(HT Photo)

The Union cabinet on Wednesday approved stake sales in 11 state-owned companies, flagging off the disinvestment process for 2017-18.

The cabinet committee on economic affairs (CCEA), chaired by the Prime Minister Narendra Modi, cleared the listing of shares in Rail Vikas Nigam Limited (RVNL), IRCON International Limited, Indian Railway Finance Corporation (IRFC) Ltd, Indian Railway Catering and Tourism Corporation (IRCTC) Ltd, RITES Ltd, Bharat Dynamics Limited (BDL), Garden Reach Shipbuilders & Engineers (GRSE) Ltd, Mazagon Dock Shipbuilders Limited (MDSL), North Eastern Electric Power Corporation (NEEPCO) Ltd, MSTC Ltd and Mishra Dhatu Nigam Ltd.

The listing of companies will be through public offer of shares upto 25% of Government of India’s shareholding, which may include offer of fresh shares for raising of funds from market.

“However, actual disinvestment in respect of each CPSE along with the mode of raising resources has been delegated for decision on a case to case basis to the alternative mechanism, headed by the finance minister,” an official release said.

The CCEA has also approved reservation of shares for the eligible employees of 11 CPSEs in accordance with the extant provisions of SEBI Regulations.

With a view to ensure wider participation by small investors in the CPSEs’ disinvestment program, a price discount upto 5% on the issue price has also been approved for the retail investors and eligible employees of 11 CPSEs participating in this offer.