Public Sector Undertakings listings to gain momentum next fiscal

Mumbai: The NDA regime, for the period from May 2014 to March 2019, has seen listing of 13 public sector undertakings (PSUs) on the main board of the stock exchanges.

Insurance, defence and railway sector PSUs dominated the list of government promoted companies whose shares were sold to the public by listing them on the stock exchanges.

Going ahead, nine more PSUs are likely to get listed on the stock exchanges through initial public offering and follow on public offering routes as part of the government's divestment strategy for financial year (FY) 2019-20.

The government has set a divestment target of Rs 90,000 crore for FY2019-20.

The PSUs being lined up for listing include Telecommunications Consultants India (TCIL), RailTel Corporation India (RCIL), National Seeds Corporation (NSC), Tehri Hydro Development Corp-oration (THDCL), Water and Power Consultancy Services (Wapcos), FCI Aravali Gypsum and Minerals (FAGM), and Kudremukh Iron Ore Company (KIOCL).

SBI General Insurance IPO is also likely in the next fiscal year.

Miniratna company Rail Vikas Nigam’s IPO is likely this week, with the company and investment bankers organising a road show on Tuesday.

MSTC, the IPO of which closed on March 20, will be listed in the coming week.

The PSUs that were listed during 2014-19 include PNB Housing Finance in 2016 and The New India Assurance Company, General Insurance Corporation of India, SBI Life Insurance, Cochin Shipyard and Housing and Urban Development Corporation or Hudco in 2017. The year 2018 saw listing of Garden Reach Shipbuilders & Engineers, Ircon International, RITES, Mishra Dhatu Nigam (Midhani), Hindus-tan Aeronautics Limited  and Bharat Dynamics.

The year 2017 saw three big public issues by The new India Assurance Company (Rs 7,653.32 crore), General Insurance Corporation of India or GIC (Rs 9,704.16 crore) and HUDCO (Rs 1,207.35 crore). The year 2018 saw maximum listing of six public sector companies, including the listing of HAL, which raised Rs 4,054.66 crore. The years 2016 (PNB Housing Finance) and 2019 (MSTC) saw one PSU each getting listed.

Last year, in December, the Cabinet Committee on Economic Affairs (CCEA) had approved the listing seven PSUs on the stock exchanges. They are: TCIL, RCIL, NSC, THDCL, Wapcos and FAGM.