Cabinet approves listing of 11 CPSEs on stock exchanges

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved listing of 11 Central Public Sector Enterprises (CPSEs), including Indian Railway Catering and Tourism Corporation, on stock exchanges.

The other CPSEs that will be listed are the Rail Vikas Nigam Ltd, IRCON International Ltd, Indian Railway Finance Corporation (IRFC) Ltd, RITES (earlier known as Rail India Technical and Economic Service), Bharat Dynamics Ltd (BDL), Garden Reach Shipbuilders & Engineers (GRSE), Mazagon Dock Shipbuilders Ltd (MDSL), North Eastern Electric Power Corporation (NEEPCO), Mishra Dhatu Nigam Ltd. (MIDHANI) and MSTC Ltd.

"Listing of CPSEs will be through public offer of shares up to 25 per cent of government's shareholding, which may include offer of fresh shares for raising of resources from market,", said a Finance Ministry statement.

However, actual disinvestment in respect of each CPSE alongwith the mode of raising resources has been delegated for decision on a case to case basis to the alternative mechanism, headed by Finance Minister Arun Jaitley.

The CCEA has also approved reservation of shares for the eligible employees of 11 CPSEs in accordance with the extant provisions of Sebi regulations.

"With a view to ensure wider participation by small investors in the CPSEs' disinvestment program, a price discount up to 5 per cent on the issue price has also been approved for the retail investors and eligible employees of 11 CPSEs participating in this offer," the statement said.

Presenting the Budget 2017-18, Jaitley had said: "Listing of public sector enterprises will foster public accountability and unlock the true value of these companies. The government will put in place a revised mechanism and procedure to ensure time-bound listing of identified CPSEs on stock exchanges...."

--IANS

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