Big Gains to Government

A study by Delhi-based PRIME Database has shown that the Government has made huge gains in recent PSU IPOs.

COMPANY IPO MONTH POST IPO GOVT. HOLDING (%) POST IPO GOVT. HOLDING (No. of Shares in crores) OFFER PRICE (Rs.) VALUE OF GOVT. HOLDING ON ISSUE DATE (Rs. crore) MARKET PRICE AS ON 03.09.2010 (Rs.) VALUE OF GOVT. HOLDING AS ON 03.09.2010 (Rs. crore) GAIN/ LOSS (Rs. crore) % GAIN/ LOSS NTPC LTD. Oct-2004 89.50 737.96 62.00 45753.73 196.20 144788.43 99034.70 216.45 POWER FINANCE CORP.LTD. Jan-2007 89.78 103.05 85.00 8758.83 345.10 35560.83 26802.00 306 POWER GRID CORP.OF INDIA LTD. Sep-2007 86.36 363.49 52.00 18901.49 108.00 39257.01 20355.52 107.69 RURAL ELECTRIFICATION CORP.LTD. Feb-2008 81.82 70.25 105.00 7376.67 326.80 22959.01 15582.34 211.24 NHPC LTD. Aug-2009 86.36 1062.34 36.00 38244.13 31.10 33038.68 -5205.45 -13.61 TOTAL         119034.85 275603.96 156569.11 131.53

(Only PSU IPOs since 2004 onwards, with a listing period of over 1 year have been considered in the study)

As can be seen, the Government has made a notional gain of over Rs. 156569 crore or 132% in these 5 IPOs alone as on 03.09.2010