The government is likely to push stake sale in public sector companies, including Steel Authority of India Ltd, General Insurance Corp of India, and New India Assurance Co Ltd, to the next financial year due to their weak share prices, a senior finance ministry official said. "We have quite a few companies which are financially sound, but that is not reflected in their stock price," the official told Cogencis.
"We are monitoring these companies so that they can be brought to market at the right time." The disinvestment department is looking at cutting stake in public sector enterprises wherever feasible, though transactions in these companies may happen next financial year as the effort is to maximise value, a second official said. The government is looking at follow-on public issues in these three companies through offer for sale. It currently holds 75.0% stake in Steel Authority of India, 85.8% stake in General Insurance Corp, and 85.4% stake in New India Assurance.
Shares of SAIL are currently trading at around 58 rupees a share, a discount of almost 40% to its January 2018 price. General Insurance Corp and New India Assurance shares are currently trading at less than half their listing price, after accounting for bonus shares.
BPCL bid evaluation meet today; Vedanta included
Crisil amends GDP drop forecast to 7.7pc on stronger recovery
ICICI direct brings ‘ICICIdirect Neo’ - a zero brokerage plan