AI sale: PSUs set for rerating, divestment agenda gets a push, say analysts

Besides Air India and BPCL, SCI, CONCOR, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam are some of the other public sector companies that are likely to see government cut its stake

Analysts have given a thumbs-up to the takeover of Air India by Tata Sons and suggest that the diversified conglomerate has acquired the struggling state-owned entity at an attractive price. The deal, they say, is a win-win for both – the government and Tata Sons – and can help fast track the rest of the divestments lined up in fiscal 2021-22 (FY22). That apart, it will help re-rate stocks of most public sector enterprises (PSE) at the bourses.

“The Air India deal going through is in itself is a big development can will trigger a rerating of PSEs, especially Bharat