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

Here’s an I.D.E.A. for career growth and success

Success in today’s professional organisation is no longer solely determined by academic qualifications, technical expertise or years of experience. While these attributes do matter, organisations increasingly value individuals who demonstrate the right mindset and behavioural qualities. The ability

PM interacts with CEOs, founders of space startups

Prime minister Narendra Modi interacted with CEOs and Founders of 20 Space Startups at Seva Teerth on Friday.   CEOs of leading companies in the space sector working in diverse fields ranging from building rockets and reusable semi-cryogenic launch vehicles, avionics, satelli

From one cow to a dairy business

In 2012, Anita Dash wasn`t dreaming of building a dairy brand. She wasn`t studying business models or planning market expansion. Like countless mothers across India, her focus was on something much simpler: giving her children a better future.   At the time, her most valuable

Ethanol blending: The two sides of a story

India`s crude oil consumption is estimated to be around 88.5% imported from abroad. This one single figure is also responsible for why ethanol has become both an economic strategy and fuel policy at the same time. In an economy like India, which depends so heavily on foreign oil, any increase in internat

Food inflation: Not a macroeconomic statistic but a developmental indicator

India`s retail inflation shows a reassuring picture at first glance. According to the latest data, Consumer Price Index (CPI) inflation edged up to 4.38% in June 2026 from 3.93% in May 2026, but continued to remain within the Reserve Bank of India`s (RBI) target band of 4% (+/- 2%). However, beneath this

Skin in the game or masterful market timing?

When a company founder opens their personal chequebook to buy shares in their own business, stock markets usually applaud. To the average retail investor, it feels like the ultimate vote of confidence, a sign that the people running the show have real skin in the game and believe brighter days are ahead.

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter