Govt needs to sell stake of over Rs 250 billion as deadline draws near

Sebi had given an extension last year for PSUs to meet 25% minimum public shareholding rule

Sachin P MampattaSameer Mulgaonkar Mumbai
Govt need to sell stake of over Rs 250 billion as deadline draws near


The government will be required to sell stake worth over Rs 269.8 billion in less than two months in order to meet a regulatory deadline for minimum public shareholding.
The Securities and Exchange Board of India (Sebi) had granted an extension last year for listed public sector companies to meet the 25 per cent public shareholding rule. The deadline expires on August 21.
An examination of current shareholding shows that the Centre will have to sell Rs 181.4 billion in companies, excluding public sector banks (PSBs). Embattled PSBs, whose government stake increases on account of capital infusion, would need another Rs 88.3 billion in stake sales, according to the June 26 share prices and shareholding data compiled by the Business Standard Research Bureau. This takes the total to Rs 269.8 billion.
Pranav Haldea, managing director, Prime Database Group, said it would be unlikely to see such a large number of issues in such

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First Published: Jun 27 2018 | 6:53 AM IST

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