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

Railways imposed ₹5.13 crore fine for food quality and hygiene violations

Indian Railways serve about 58 crore meals every year on an average. About only 0.0008% food quality related complaints are received on average. Based on complaints during the last three years, appropriate penal actions have been taken by IRCTC. Such actions include imposition of fines amounting to ₹5.13

STHAVAR: Why every Indian built asset needs a permanent digital identity

India has built digital systems for identity, payments, taxation, documents, logistics and public services. State governments, ministries, infrastructure agencies and urban local bodies have also created portals for land records, building permissions, project monitoring, property taxation and municipal s

Saksham Skill census identifies 22,000 job-ready candidates in one Mumbai ward

A first-of-its-kind AI-enabled skill census conducted in Mumbai`s H-West Ward has identified a potential livelihood pipeline of nearly 22,000 candidates, generated over 32,000 provisional job matches while revealing that 71.2 per cent of surveyed homemakers are willing to join the workforce, according to

GI tags: Scaling traditional wealth into global brands

Geographical Indication (GI) tags have emerged as a powerful tool for protecting India`s cultural heritage, while creating economic opportunities for local communities. By linking products to their place of origin, GI tags preserve traditional knowledge, prevent misuse, and enhance consumer trust. They h

BMC: 207 officials in ACB net, 112 still on duty, 68 retire before justice catches up

There are significant delays in the handling of corruption cases involving officials of the Brihanmumbai Municipal Corporation (BMC), a Right to Information (RTI) response obtained by rights activist Jeetendra Ghadge has revealed. As of 30 April 2026, 207 BMC officials face Anti-Corruption Bureau (A

The transformation trap: Why efficiency is not innovation

Every company is transforming, or so it claims.   There was a time when the word ‘transformation’ carried weight. It signified bold strategic shifts, reinvention of business models, and breakthrough technologies that fundamentally changed how organizations created

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter