Stocks

New shareholding norm: Govt in a bind on diluting stake worth ₹61,000 cr

Our Bureau Kolkata | Updated on March 12, 2018 Published on June 20, 2014

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SEBI on Thursday said all listed PSUs will have to maintain 25 per cent minimum public shareholding as against 10 per cent currently



About 35 PSUs (25 CPSEs, nine public sector banks and one State-level public enterprise) would need to dilute stake worth around ₹61,282 crore, according to a study by Prime Database, a firm tracking primary market data. SEBI on Thursday said all listed PSUs will have to maintain 25 per cent minimum public shareholding as against 10 per cent currently. This will bring public shareholding in PSUs at par with private sector companies.

Pranav Haldea, MD of Prime Database, said, Coal India leads the list with a dilution of nearly ₹36,500 crore or nearly 59 per cent of the total amount, based on Wednesday’s closing price.

No more parity

Zulfiqar Shivji, Head — Transaction Advisory Services, BDO India LLP, said: “The announcement from SEBI comes as a welcome move, bringing parity between PSUs and other listed entities.

“It defines a timeline within which the Government would dilute their holding in PSUs where the limits are breached.” Several large PSUs such as HPCL (public holding of 48.89 per cent), BPCL (45.07 per cent), GAIL (42.49 per cent), PGCIL (42.10 per cent), MTNL (41.77 per cent), BHEL (36.94 per cent) and NTPC have already met the revised public shareholding requirement. PSUs were initially asked to bring their public shareholding only to 10 per cent by August 2013, while the private sector companies had been asked to bring their shareholding up to 25 per cent by June 2013.

The total amount diluted in PSUs to achieve minimum public shareholding norm since April 1, 2011, has been ₹2,510 crore, of which ₹2,086 crore, was through the offer-for-sale route.

Published on June 20, 2014
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