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Big Gains to Government

A study by Delhi-based PRIME Database has shown that the Government has made huge gains in some of the 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 19.12.2013 (Rs.) VALUE OF GOVT. HOLDING AS ON 19.12.2013 (Rs. crore) GAIN/ LOSS
(Rs. crore)		 % GAIN/ LOSS
NTPC LTD. Oct-2004 89.50 737.96 62.00 45753.73 135.00 99625.06 53871.33 117.74
POWER FINANCE CORP.LTD. Jan-2007 89.78 103.05 85.00 8758.83 151.05 15564.95 6806.12 77.71
POWER GRID CORP.OF INDIA LTD. Sep-2007 86.36 363.49 52.00 18901.49 99.25 36076.47 17174.98 90.87
RURAL ELECTRIFICATION CORP.LTD. Feb-2008 81.82 70.25 105.00 7376.67 204.40 14359.92 6983.25 94.67
NHPC LTD. Aug-2009 86.36 1062.34 36.00 38244.13 18.45 19600.12 -18644.01 -48.75
OIL INDIA LTD. Sep-2009 78.43 18.86 1050.00 19802.95 458.85 8653.89 -11149.06 -56.3
SJVN LTD. Apr-2010 89.97 372.16 26.00 9676.23 20.60 7666.55 -2009.68 -20.77
COAL INDIA LTD. Oct-2010 89.99 568.47 245.00 139275.89 280.90 159683.99 20408.10 14.65
MOIL LTD. Nov-2010 80.00 13.44 375.00 5040.00 235.55 3165.79 -1874.21 -37.19
PUNJAB & SIND BANK Dec-2010 82.07 18.31 120.00 2196.67 43.80 801.79 -1394.88 -63.5
NATIONAL BUILDINGS CONSTRUCTION CORP.LTD. Mar-2012 90.00 10.80 106.00 1144.80 138.15 1492.02 347.22 30.33
TOTAL         296171.39   366690.55 70519.16 23.81

(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. 70519 crore or 24% in these 11 IPOs as on 19.12.2013