PSU firms rally post buyback buzz
The CPSEs are known to be sitting on a cash reserve of Rs 2.55 lakh crore, which the government intends to utilise to help prop up share prices of the PSUs.
By ET Online |
NEW DELHI: Shares of public sector firms rallied up to 4 per cent in Wednesday's trade after reports that the government may push the central public sector enterprises (CPSE) to buy back shares in the coming months.
The CPSEs are known to be sitting on a cash reserve of Rs 2.55 lakh crore, which the government intends to utilise to help prop up share prices of the public enterprises. The move may help the government realise its Rs 56,500 crore disinvestment target set in the Budget.
Shares of ONGC closed higher by 3.41 per cent in reaction to the development, NMDC 0.66 per cent, BHEL (down 0.89 per cent), NALCO (up 3.28 per cent) and CIL (up 0.82 per cent).
"On the non-strategic side, we have included buyback of shares," economic affairs secretary Shaktikanta Das told ET.
"Buyback of shares is in case of 100% government-owned companies that are cash rich and do not have adequate capital expenditure programme. There are other companies that are listed and cash rich. In these, it would be buyback and disinvestment. The list of CPSUs has been finalised by the department of disinvestment," he said.
The CPSEs are known to be sitting on a cash reserve of Rs 2.55 lakh crore, which the government intends to utilise to help prop up share prices of the public enterprises. The move may help the government realise its Rs 56,500 crore disinvestment target set in the Budget.
Shares of ONGC closed higher by 3.41 per cent in reaction to the development, NMDC 0.66 per cent, BHEL (down 0.89 per cent), NALCO (up 3.28 per cent) and CIL (up 0.82 per cent).
"On the non-strategic side, we have included buyback of shares," economic affairs secretary Shaktikanta Das told ET.
"Buyback of shares is in case of 100% government-owned companies that are cash rich and do not have adequate capital expenditure programme. There are other companies that are listed and cash rich. In these, it would be buyback and disinvestment. The list of CPSUs has been finalised by the department of disinvestment," he said.
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