Street debut planned for 34 mini-ratnas
The government is planning discussions with 34 unlisted mini-ratna companies to get them listed on the stock exchanges and unlock their value. What's your IQ?
By Niranjan Bharati, TNN |
NEW DELHI: After the navratna companies, it may now be the turn of the miniratna companies to make the public richer. The government is planning discussions with 34 unlisted mini-ratna companies to get them listed on the stock exchanges and unlock their value. The list of companies with which the government plans to initiate talks include Bharat Sanchar Nigam (BSNL), Coal India (CIL) and Rashtriya Ispat Nigam (RINL).
While Rural Electrification Corporation (REC) and Oil India Corporation (OIC) have already announced their plans to tap the market, RINL is in the process of firming up its plans.
“We want every profitable PSU to be listed on the stock exchange and would soon initiate consultation in this regard,” a department of public enterprises (DPE) official said, adding that the department would kick off the process soon. The talks may also focus on dilution of government’s stake in the companies through the IPOs.
The official said that the department has not yet finalised whether to start talks individually with the companies or convene a general meeting of all the mini-ratna PSUs in this regard. However, he said the department wishes to list BSNL and CIL at the earliest . The department may also start consultation with the nodal ministries to take steps in this regard soon.
The move is in line with the UPA government’s National Common Minimum Programme (NCMP) which allows the Centre to encourage central public sector enterprises (CPSEs) to enter the capital market. Prime Minister Manmohan Singh has also stated that it would be useful for more CPSEs to be listed on stock exchanges.
The Securities and Exchange Board of India (Sebi) has also eased the rules regarding disclosure and investor protection guidelines in terms of pricing, promoter’s contribution and lock-in requirements for issue of securities through IPOs for government companies engaged in infrastructure sector. This relaxation would make it easier for companies like BSNL and CIL to go for listing.
The Board for Reconstruction of Public Sector Enterprises (BRPSE) is also in favour of the central PSUs getting listed on the stock exchange as this would help the board in knowing the real value of the company and in deciding which company may be capable of taking over sick units.
While Rural Electrification Corporation (REC) and Oil India Corporation (OIC) have already announced their plans to tap the market, RINL is in the process of firming up its plans.
“We want every profitable PSU to be listed on the stock exchange and would soon initiate consultation in this regard,” a department of public enterprises (DPE) official said, adding that the department would kick off the process soon. The talks may also focus on dilution of government’s stake in the companies through the IPOs.
The official said that the department has not yet finalised whether to start talks individually with the companies or convene a general meeting of all the mini-ratna PSUs in this regard. However, he said the department wishes to list BSNL and CIL at the earliest . The department may also start consultation with the nodal ministries to take steps in this regard soon.
The move is in line with the UPA government’s National Common Minimum Programme (NCMP) which allows the Centre to encourage central public sector enterprises (CPSEs) to enter the capital market. Prime Minister Manmohan Singh has also stated that it would be useful for more CPSEs to be listed on stock exchanges.
The Securities and Exchange Board of India (Sebi) has also eased the rules regarding disclosure and investor protection guidelines in terms of pricing, promoter’s contribution and lock-in requirements for issue of securities through IPOs for government companies engaged in infrastructure sector. This relaxation would make it easier for companies like BSNL and CIL to go for listing.
ADVERTISEMENT
The Board for Reconstruction of Public Sector Enterprises (BRPSE) is also in favour of the central PSUs getting listed on the stock exchange as this would help the board in knowing the real value of the company and in deciding which company may be capable of taking over sick units.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
