181 pvt cos to offload shares worth Rs 27k cr by June 2013

To meet Sebi's minimum public holding norms these companies will be required to cut their stakes

As many as 181 companies from the private sector will need to sell shares worth about Rs 27,000 crore to meet the minimum public holding norms for listed firms, market regulator Sebi's chief UK Sinha said today.

The companies would need to meet these guidelines, which mandate the companies to have a minimum 25% public shareholding, by June next year.

"There are 181 private sector companies which are not compliant with that requirement and the amount of securities that has to be brought to the market...[is] about Rs 27,000 crore," Sinha said at CII meet here.

The estimated amount of Rs 27,000 crore, he said, is based on valuations of the companies as on February 29, 2012.

Shares worth about Rs 25,000 crore would be required to be sold by a total of 43 companies, out of the total 181 firms, Sinha added.

Besides, many public sector companies (PSUs) too would be required to offload equities worth Rs 12,000 crore by June, 2013.

In January this year, Sebi had introduced Institutional Placement Programme (IPP) and Offer for Sale of Shares Through the Stock Exchange with an aim to fast-track the sale of promoters' equity in listed companies to meet minimum public shareholding norm.

The Offer for Sale of Shares popularly known as auction route has been since used by three companies, including ONGC, to off load promoter's shares.

Sinha further said that Sebi was taking various steps, like simplification of IPO forms to encourage more and more people to participate in the capital market.

"We have simplified the IPO forms. We have encouraged disclosures including about the track record of investment bankers who are bringing issue.

"Some people may have the grievances that too much is being asked...But the whole idea is to encourage people to look at the market much more seriously," he added.