Professional Documents
Culture Documents
Disinvestments in India
Govt. ownership in a PSU is transferred by sale of its invested equity, bond capital in that PSU Disinvestments in FY10-11 till date (02-Feb-2011)
PSU SJVN (IPO) EIL (FPO) CIL (IPO) Issue Price Rs. 26 Rs. 290 Rs. 245 Current Price Rs. 21.15 Rs. 282.55 Rs. 311.6 Amount Raised Rs. 1062 Cr Rs. 960 Cr Rs. 15199 Cr
PGCIL (FPO)
MOIL (IPO) SCI (FPO) PSB (IPO)
Rs. 90
Rs. 375 Rs. 140 Rs. 120
Rs. 95.5
Rs. 411.1 Rs. 114.2 Rs. 108.05
Rs. 3721 Cr
Rs. 1237 Cr Rs. 582 Cr Rs. 480 Cr
Objectives of Disinvestment
To fulfill budgetary requirements To bring in new capital, management, technology for modernization & expansion To cultivate healthy competition To reduce Fiscal deficit To improve overall economic efficiency To encourage wide share in ownership To improve public finances
Ways to Disinvest
Strategic Sale : Involves block transfer of shares and
transfer of management control to a strategic partner
Capital Market :
Offer for sale Fixed Price / Book Building : Public invitation to buy new or existing securities Secondary Market / Private Placement : Sale of securities to a relatively small number of select investors
Thank You