Govt is mulling listing of PSEs' green energy arms, says Dipam secretary

There is a lot of opportunity for subsidiary units of some of our important companies to come to the market, said Pandey

The Central Government is mulling the listing of subsidiaries of certain public energy companies, said Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (Dipam) on Friday.

“There is a lot of opportunity for subsidiary units of some of our important companies to come to the market. A swift transition is taking place in the energy space. The way they (energy companies) are moving is by creating subsidiaries for green assets. There is tremendous growth prospect and they are growing very fast. Those are the kind of things which will come in,” said Pandey.

“…some of the monetisation they could do through the capital market through initial public offerings (IPOs),” he added.

The Dipam Secretary said that the listings were important to deepen the market and that the listed companies were performing better than the unlisted ones.

On divestment of public sector companies, he said, “Dilution of stocks in the market has to be based on certain principles which are consistent with the market. It should not create a price overhang, neither should we sell cheap.”

Pandey was speaking at the capital market summit by industry body Assocham.