Poll results pave way for PSU share offering | business | Hindustan Times
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Poll results pave way for PSU share offering

business Updated: May 17, 2009 12:38 IST

With the UPA set to form a government without the support of the Left and other smaller parties, which have fixed ideology against divestment, the PSU firms are expected to tap the stock market route in an aggressive way for raising resources.

The Congress, which has emerged stronger, had committed in its election manifesto to giving more shareholding to the public through divestment of PSUs' shares with the government retaining a majority stake.

As stock markets are expected to build on the strength it got in last few weeks, the PSUs would get a chance to raise resources from this route even as the Left parties are out of the way to block these reforms.

"It is an opportunity for CPSEs to go to the stock market. It will also test the market and improve the corporate governance of CPSEs," Chairman and Managing Director of National Buildings Construction Corporation Arup Roy Choudhury told PTI.

Roy Choudhury, who also heads PSUs body the Standing Conference of Public Enterprises (SCOPE), said that the decision to enter the capital market would depend on an individual public sector unit.