SCOPE advise state run firms against flooding market with IPOs

Standing Conference Of Public Enterprises (SCOPE), the apex industry chamber for state-run firms, has advised members against flooding the market with their IPO offerings -- expected in the face of the government planning to list all profit-making public sector enterprises.

Welcoming the government's decision that all profit making CPSEs should be listed, SCOPE asked the chief executives of such units to take necessary measures to make their PSEs more market savvy.

Besides, the government has also asked already listed PSEs to ensure at least 10 per cent of public holding.

SCOPE Chairman Arup Roy Choudhury, however, cautioned against flooding the market with offers from PSEs.

"...The market should not be flooded with offering from PSEs as it may dilute the value of stocks and it should be left to the professionals, management or board of the PSEs to decide when they should access the market so as to maximise the returns," he said at the AGM of SCOPE yesterday.

The government move is expected to result in public offers by over 100 companies, including telecom behemoth BSNL.

Choudhury also said SCOPE would give thrust to its interface with the government, regulator bodies and policy makers for creating favourable policies and regulatory framework to safeguard the interest of PSEs.