Govt to unload nearly Rs. 60,000 cr in next three years

The government may well end up being amongst the biggest suppliers of paper in the capital markets over the next three years, with new regulations mandating higher public shareholding for even government-backed companies.

There are currently over 30 government companies whose shares are listed for trading on the stock exchanges. These companies will need to unload Rs.59311.68 crores worth of shares in the next three years, according to an analysis by Business Standard.

The Securities and Exchange Board of India has increased the minimum required public shareholding for government-owned companies to 25% from the existing 10%. The move brings these companies on par with private sector entities who are required to have 25% public shareholding.

The decision was taken at the Sebi board meeting in Delhi today.

The deadline for private sector companies to achieve 25% public shareholding was June 2013. Government companies had been given till August 2013 to bring public shareholding to at least 10%.

Coal India will account for more than 60% of the stake sale, accounting for Rs.36463.29 crores. Next in line is NMDC, with Rs. 3468.12 crores. NHPC Ltd, Neyveli Lignite, Steel Authority of India Limited, Hindustan Copper, SJVN, Central Bank of India and MMTC all have to unload between Rs.1000 crores to Rs.3500 crores.