Business Daily from THE HINDU group of publications
Tuesday, November 3, 2009
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Business Daily from THE HINDU group of publications Tuesday, November 3, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Update at 1900 hrs (IST)
Industry PSU stake sale likely only after FPOs: Govt NEW DELHI: The Government will consider disinvesting its stakes in profitable listed public sector units when these come out with follow-on offers. “The government would consider sale of a part of its shareholding by riding piggyback (on) the follow-on public offerings,” said a note prepared by the finance ministry on the occasion of Economic Editors' Conference. The government would sell directly its stake in NTPC without issuance of any fresh equity. In case of the other two state-run firms, Satluj Jal Vidyut Nigam Ltd and Rural Electrification Corporation whose disinvestment has been approved, there would be a mix of fresh equity and direct government stake sale. There was a mix of direct disinvestment as well as fresh equity in the case of NHPC and Oil India that were listed recently. The note said the government would focus first on these listed profitable public sector companies where less than 10 per cent stake is held by the public. It said the government can go in for either fresh equity or direct stake sale, or both, in the IPOs . The note said the National Investment Fund, which gets proceeds of disinvestments, has earned less returns on investments than the minimum required in the first two years. - PTI
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