The government’s divestment programme kicks off today with SAIL’s offer for sale (OFS) today. The government expects to mop up around Rs 1,700 crore through this exercise. Following the stake sale, the government holding in the company will come down from 80 per cent to 75 per cent.
Here is all that you need to read up on PSU divestments.
Govt kicks off disinvestment; SAIL OFS today
The government will kick off its Rs 58,000-crore disinvestment programme for 2014-15 today, with dilution of a 5% stake in Steel Authority of India Ltd (SAIL) Click here to read the story
SAIL OFS: Only long-term investors should apply
Steel Authority of India (SAIL)’s offer for sale (OFS) comes at a time when the demand and pricing environment for steel is subdued, both in India and globally. Plus, domestic supplies are expected to increase faster than demand over the next 12-18 months Click here to read the story
Divestment delay cost the Modi govt Rs 4,700 crore
What explains the delay? An analysis of newspapers points to two events after the Cabinet decision - the finance minister's hospitalisation and the shuffling in North Block, when top officers were replaced en masse. The Street terms this a concentration risk - too much riding on too few Click here to read the story
LIC ready to buy shares in govt divestment programme
State-run insurance behemoth LIC has invested Rs 45,000 crore in equity markets so far this fiscal and is ready to purchase more shares when government undertakes its divestment programme, Chairman S K Roy said Click here to read the story
Buy ONGC, CIL, NHPC during govt stake sale: Analysts
Analysts suggest though these stocks remain good long-term bets, one must treat each company on own merits. The possibility of a discount to retail investors in the share sales, however, could be a near-term dampener for these stocks, they say. Click here to read the story
Divestment contenders beat Street
Stocks of government probables for divestment or stake sale such as Steel Authority of India (SAIL), Mahanagar Telephone Nigam (MTNL), National Aluminium Company (Nalco) and Container Corporation (Concor) have outperformed the markets in the past one year Click here to read the story
Will the govt hit its stake sale target this time?
The Narendra Modi government is all set for India's biggest ever divestment programme. The finance ministry has identified over a dozen public-sector units, or PSUs, which can hit the market in the eight months that remain in 2014-15. The target is to raise Rs 58,425 crore - 269 per cent higher than Rs 15,819 crore mopped up last year. Click here to read the story
