From Rail Vikas Nigam, IRCTC to HAL, government may line up a number of IPOs this year
Posted on 11th May 2017 |
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| Following the launch of initial public offering (IPO) of Hudco, after a five-year drought of PSU listings, the government is readying a series of IPOs by state-run firms. Hindustan Aeronautics(HAL), Cochin Shipyard, General Insurance (GIC Re) and New India Assurance (NIA) are among the firms that are likely to hit the market in the current fiscal.
The department of public asset management (DIPAM) is currently overseeing preparations including appointment of merchant bankers for listing of 10 to12 PSUs to ensure that a majority of these are listed by March 2018. “Preparations HAL and Cochin Shipyard IPOs are complete. They will hit the market anytime,” a senior government official told FE. The Centre will divest 10% each in HAL and Cochin Shipyard via the IPOs to raise nearly Rs 2,000 crore.
Bulk of the IPO proceeds, however, in the current fiscal are likely to come from country’s only reinsurer GIC Re and NIA, a leading general insurance company. The government could raise a total of about Rs 10,000 crore by selling 10% stake each in GIC Re and NIA. Besides government stake sale, the two insurance companies would also issue fresh equity to raise capital for their business expansion. The Centre could generate between Rs 15,000-Rs 20,000 crore from IPOs alone this year to help meet an ambitious disinvestment target of Rs 72,500 crore. According to the procedures outlined by the DIPAM in February, a profitable PSU would have to list on the stock exchanges within 6 months, after the administrative ministry is on-board for the plan. Besides generating non-tax revenue for the government, the IPOs will help improve corporate governance in the PSUs. “The government is highly resolved for listing of a number of PSUs this year,” another official said. In most of the identified PSUs, the government has already initiated processes such as appointment of merchant bankers and advisers for IPOs. Hudco IPO, which is now open for subscription till Thursday, has received a phenomenal response from both retail and institutional investors. It was subscribed 3-times by the end of day 2 of the 3-day subscription window.The government could raise around `1,200 crore from 10% stake sale in the company. Prior to the Hudco IPO, the last PSU listing was in March 2012 when the government sold a 10% stake in NBCC for Rs 125 crore. According to available data, over 100 profitable PSUs are not yet listed on stock exchanges. |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
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