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

I believe we are at crossroads, says deputy governor RBI

  Only a bank that fears losing its deposit base or incurring the wrath of its shareholders is likely to recognise losses in a timely manner. In many of our banks, such market discipline is simply not present at the moment, said RBI deputy governor Viral V Acharya.  

India improving rice variety for flood prone areas

Farmers would no longer have to fret when the surging river water inundates their fields as scientists are working on rice varieties that are hardy and would grow in fields which have been submerged by flash floods. Dr Nitendra Prakash of crop research station at Bahraich, Uttar Pradesh told

At 55.28% BMC sees highest voter turnout in 25 years

Mumbai recorded its highest ever turnout in the civic elections on Tuesday with 55.28% voters exercising their franchise. Voter turnout in R Central ward of Charkop-Borivali was 61.5% followed by 60

A mirage called disinvestment

The government is getting ambitious. It wants to divest some PSU shareholding and raise a staggering Rs 72,500 crore during the 2017-18 fiscal. The mood is upbeat among finance ministry mandarins due to the heartening performance of the exchange traded fund (ETF), a basket of 10 bluechip central public ser

Cash Donations: More opacity with legal backing too

While presenting the budget, the finance minister made an announcement about making donations to political parties more transparent. If the proposals to amend the relevant laws are approved by parliament, from April 2017 donations to political parties can be made in cash only up to Rs 2,000; payments of hi

Is UP headed for a hung assembly?

Is UP headed for a hung assembly?

Video

क्या बागी हो गए हैं वरुण गांधी?
Digital Transformation Summit

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter