PSUs to be more investor-friendly as govt looks to sell shares

GN Bureau | October 26, 2015


#PSU   #public sector   #investor-friendly   #The Department of Disinvestment   #DoD   #Offer for Sale   #OFS  

Public sector units may open up now. The Department of Disinvestment (DoD) likes to see listed public sector undertakings (PSUs) in more proactive mode in having investor contact and keep them updated on company plans. This will translate into better marketability and facilitate a share sale on short notice.

In a detailed note, the DoD has suggested to the Department of Public Enterprises that listed PSUs should be encouraged to organise conference calls with investors, merchant bankers and analysts after quarterly results. This kind of interaction is a normal practice with the private companies.

Educated retail investors will lap up shares of the company as when they offered, even at a short notice period. The DoD has already taken up the issue of reducing the time period between the announcement of an Offer for Sale (OFS) and actual sale.

Sebi had in June allowed companies to disclose OFS plans two banking days prior to the share sale -- a move that has led to most PSU share sales taking place on Mondays as the DoD does not want trading days in-between the announcement and stake sale.

The DoD had asked Sebi to reduce the time gap between announcement and actual sale to T-1, which is one trading day before OFS.

The government has set a target of raising Rs 69,500 crore through disinvestment in current fiscal. So far due to volatile market conditions, only Rs 12,600 crore has been raised through stake sale in four PSUs.

Comments

 

Other News

3% of medicines are of poor quality: Survey

 More than three percent of medicines in India are ‘Not of Standard Quality’ (NSQ) and 0.0245 percent spurious, reveals a survey report on drugs quality by the ministry of health.  The survey carried out by National Institute of Biologicals (NIB), Noida found that out of the

BEL unveils new weapon system for MBT Arjun tank

 Bharat electronics limited (BEL) has launched a new weapon control system — Remote Controlled Weapon Station (RCWS) / Air Defence Weapon Station (ADWS) for 12.7 mm gun of MBT Arjun Mk II battle tank during recently concluded Aero India 2017 in Bengaluru. The new weapon control system

Sasikala camp in talks with OPS faction

 The Sasikala camp is in talks with the O Panneerselvam (OPS) faction and they are trying to win them over, says an AIADMK insider. Negotiation have started between the main AIADMK, which is with Sasikala, and the splinter group that is supporting former chief minister OPS. The party insider

Stories to read over the weekend

On October 1 last year, Mehtab Alam Ansari, 30, who worked as a tailor in Delhi, had arrived in his village, Chepa Khurd in Barkagaon tehsil of Harazibagh district, to celebrate Eid with his family. That morning, he was nearing Dadi Kalan, a neighbouring village, to meet an acquaintance when he hea

ONGC to invest of Rs 7,327 cr for five projects

  State run enterprise oil and natural gas corporation limited (ONGC) has decided to invest Rs 7,327 crore to develop five projects to produce oil and gas. The decision was taken in its 290th board meeting held on February 23. The projects include development of R-Series fields, incl

Shiv Sena may again ally with BJP

The civic election results could well have long term implications in Maharashtra’s politics, with the Bharatiya Janata Party (BJP) doing dramatically well and the Shiv Sena failing to get a simple majority.   The Shiv Sena won 84 seats, while the BJP bagged 82 seats. Th

Video

Digital Transformation Summit

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter