Sell-off wave set for start
With the Centre stepping up its disinvestments programme, starting June, at least one public sector issue is expected to hit the market every month, either as an initial public offer by an unlisted company or as a follow-on public offer by listed ones. Anupama Airy and Gaurav Choudhury report.business Updated: May 06, 2010 02:45 IST
It may rain share issues from the public sector all through the coming monsoon and probably, beyond the season as well.
With the Centre stepping up its disinvestments programme, starting June, at least one public sector issue is expected to hit the market every month, either as an initial public offer (IPO) by an unlisted company or as a follow-on public offer (FPO) by listed ones.
Subsequently, FPOs of even cash-rich companies such as Indian Oil Corporation, Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation and Limited (BPCL) could hit the markets after a ministerial panel come out with a clear policy on deregulation of petrol and diesel prices.
Public issues of Engineers India Limited (EIL), Coal India Limited (CIL), SAIL and Hindustan Copper are among those that would hit the stock markets one after another in the next few months.
Of these, Coal India Limited’s IPO, expected to come in June, will alone fetch about Rs 14,000 crore, a government official said.
The government expects to raise Rs 40,000 crore through disinvestment in 2010-11.
Last November, the government had decided that public should hold at least 10 per cent shares in all profitable, listed government-owned companies.
There are 10 such companies including MMTC and Neyveli Lignite Corp.
Similarly, all unlisted state firms under the Centre that made profits for the past three years and have positive net worth are expected to get listed on the bourses. Some 60 firms make this grade.
First Published: May 05, 2010 21:29 IST