Prajna Capital - An Investment Guide

NHPC, Oil India To Go Ahead, Dozen Others To Wait For Now DESPITE all the hoopla over disinvestment picking up pace following the Left’s withdrawal of support to the UPA government, only two public sector companies may get listed during 2008-09. These two companies are NHPC and Oil India. Plans were afoot to list around 15 public sector companies, including heavyweights such as BSNL, RITES, Coal India and Cochin Shipyard, but public offers of most of these companies are stuck for various reasons. According to government sources, the plans for listing many PSUs have been deferred due to reasons ranging from no or little requirement for raising capital, corporate governance issues and possible protests from employee unions. The government is all for listing of public sector units as it unlocks tremendous value and creates good corporate governance. The companies, however, need to clear regulatory and internal hurdles as per a senior official in department of disinvestment ( DoD ...