IPOs of PSUs to be speeded up

Of the 157 profitable PSUs, 112 are yet to be listed on stock exchanges

GN Bureau | December 20, 2016


#IPO   #PSU  

The cabinet secretariat is likely to issue a directive to the ministries concerned shortly to explain the slackness as well as steps being taken to bring initial public offerings (IPOs) of unlisted firms, reported Financial Express.

Of the 157 profitable PSUs, 112 are yet to be listed on stock exchanges, according to the latest public enterprises survey.

The last PSU IPO was in March 2012 when the government sold a 10 percent stake in National Buildings Construction Corporation for Rs 125 crore.

“Even though the amount to be collected through the IPOs might not be huge as most of the big PSUs have already been listed, the listings should be a continuous process for greater purposes like improving corporate governance, increasing retail investor base, etc.,” an official was quoted as saying.

Officials blame choppy markets, lengthy processes and negligence on the part of the officials for the delays in listing of PSUs. If plans go right, the next IPO is likely to be that of Cochin Shipyard, through which government will sell a 10 percent stake to raise about Rs 350 crore in February-March 2017.

According to a cabinet decision in November 2009, unlisted PSUs with no accumulated losses and having earned net profit in three preceding consecutive years should be listed. “The administrative ministries should have been doing this all this time. But, there seems to be a lethargy,” another official said.

The cabinet secretariat or the department of investment and public asset management (DIPAM) might write to the administrative ministries to prepare an action taken report with details such as how many PSUs under them are unlisted, when will they be listed, etc., he said.
 

Comments

 

Other News

When police data becomes the algorithm

For decades, policing has followed a familiar sequence: a crime occurs, the police respond, an investigation produces records and those records become part of the institutional memory of the criminal justice system. Artificial intelligence is beginning to alter that sequence. Instead of merely recording

Before India voted, the framers worried about the referee

“We are making a Constitution forever and not only for today.” Shibban Lal Saksena said this in the Constituent Assembly on June 15, 1949. He was warning that a ruling party might one day choose a loyalist to run India’s elections. Seventy-seven years later, the Supreme Court is wrestli

Delhi moves to real-time traffic management

The Cabinet Committee on Economic Affairs (CCEA), chaired by prime minister Narendra Modi, has approved implementation of the ITMS Project by Delhi Police at an estimated cost of Rs.1,789.52 crore, inclusive of taxes. The project will cover 42 identified traffic corridors and will be implemented in three

MDR on UPI: Can sustainability come without weakening the network?

The extraordinary transaction volumes and value (₹29.82 Lakh crore in August 2026 alone) of the Unified Payments Interface (UPI) have made it not only an Indian success story, but a global one. In 2024, UPI accounted for nearly 49% of the world’s real-time payment transaction volume, with more th

The Xi-Trump summit: The unending rivalry

Diplomacy is akin to an art, wherein the summitry, conflict resolution and negotiations form apt constituents of the entire context of deal making and “playing for keeps” in the international arena. The Xi-Trump summit in Washington last week, in which the American president broke all conside

“Indians, yet treated like outsiders”

Moving to Delhi-NCR for education can be an exciting experience for students from Northeast India. It gives us a chance to meet new people, experience a different culture and become more independent. But living away from home also comes with challenges that people who have not experienced them may not al

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter