Cabinet approves listing of 11 PSUs -Governance Now

Cabinet approves listing of 11 PSUs

Listing of these PSUs will be through public offer of shares up to 25 percent of union government’s shareholding

GN Bureau | April 17, 2017

#listing PSUs #cabinet #CPSEs

The cabinet committee on economic affairs has approved the proposal of listing of 11 central public sector enterprises on stock exchanges.

The public sector undertakings include Rail Vikas Nigam Limited (RVNL), IRCON International Limited, Indian Railway Finance Corporation (IRFC) Ltd, Indian Railway Catering and Tourism Corporation (IRCTC) Ltd, RITES, 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 (MIDHANI).

The listing of these CPSEs will be through public offer of shares up to 25 percent of union government’s shareholding that may include offer of fresh shares for raising resources from the 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.

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

To encourage small investors in the CPSEs’ disinvestment program, a price discount upto 5 per cent on the issue price has also been approved for the retail investors and eligible employees of these PSUs.

From the economic and sectoral perspective, the decision to list 11 CPSEs on stock exchanges through public offer will have multiple advantages for to the stakeholders like post-listing; value of a CPSE has the potential to be unlocked in multiples of book value of its equity with respective increase in their market capitalisation.

Listing of CPSEs will also promote ‘people’s ownership’ by encouraging public participation in CPSEs.

Comments

Other News

JPC on simultaneous elections hold consultations in Maharashtra

The Joint Committee on the Constitution (One Hundred and Twenty-Ninth Amendment) Bill, 2024, and the Union Territories Laws (Amendment) Bill, 2024, has conducted extensive consultations with key stakeholders in Maharashtra regarding the feasibility and implications of simultaneous elections.

Leadership secrets of Rohit Sharma

The Rise of the Hitman: The Rohit Sharma Story By R. Kaushik Rupa Books, 232 pages, Rs 595 With Ro

Operation Sindoor combined hard power with diplomatic finesse

Since guns have fallen silent in India and Pakistan following their ceasefire after four days of conflict, attention has now shifted to New Delhi’s next steps. The Indian government, as per media reports, is considering sending a multi-party delegation to several countries to engage with foreign gove

Rajnath Singh calls upon IMF to reconsider financial assistance to Pakistan

Stating that Pakistan has again started to rebuild its terror infrastructure destroyed by India, defence minister Rajnath Singh called upon the International Monetary Fund (IMF) to reconsider its one-billion-dollar assistance to Islamabad and refrain from providing any support in future as well.

12 of Maharashtra`s 48 govt departments rated top performers

Maharashtra`s Home and Mining departments, headed by ACS and ex BMC commissioner Iqbal Singh Chahal, are among the 12 top performing departments scoring 100% objectives set out for the respective department. After the formation of Mahayuti government, in a first of its kind exercise chief mi

Cabinet approves semiconductor unit in Uttar Pradesh

The union cabinet chaired by the prime minister on Wednesday approved the establishment of one more semiconductor unit under India Semiconductor Mission. There are already five semiconductor units in advanced stages of construction. With this sixth unit, India moves forward in its journey to