There is now a renewed focus on disinvestments in India.PSUs or Public Sector Undertakings (Click here for types of PSUs) are among the largest and most profitable organisations in India. As on 30 April 2013, of the total of 260 Central Public Sector Enterprises (CPSEs) and subsidiaries of CPSEs, only 50 were listed. 46 of these were listed at BSE, which constituted 18% of the total market capitalisation of 5005 companies listed at BSE. In addition, 28 Public Sector Banks (PSBs) with their subsidiaries and 6 State Level Public Enterprises (SLPEs), accounted for another 5% of the total market capitalisation at BSE. Thus all PSUs together constituted 23.2% of the total market captalisation at BSE or Rs. 15.43 lakh crore (Click here for details).
PSUs have the potential for even a more dominant role, with a large number of profitable unlisted CPSEs that can go to the market. Based upon data (of profit making PSUs as on 27th December 2012), there are as many as 100 3-year profit making CPSEs that are still unlisted (Click here for details). With the government's announcement of reducing its stake in listed and unlisted (profit-making) companies to 90% via public offers, a large number of PSU public offers are now in the pipeline. This would also help achieve the goal set out in the Congress manifesto which stated that "Indian people have every right to own part of the shares of public sector companies, while the government retains the majority shareholding."
There is a huge 'go to market' knowledge gap which exists in several PSUs. What are the steps involved in getting listed, what processes need to be followed, what approvals need to be taken, what disclosures need to be made, what has been the history of disinvestments in India, etc.
An initial step to bridge this gap was taken by BSE by conducting CPSE CEO Conclaves across the country. Merchant bankers, BSE representatives and market experts provided knowledge and insights to senior PSU officials on various aspects of disinvestments and listing.
As a continuing part of the hand-holding and knowledge-empowerment process, BSE has launched this website to provide a single platform to PSUs with all information relating to disinvestments and listings.
This website would also be useful to academicians, researchers, investors as well as any person or organisation, including the media, having an interest in this subject.
Access to this website is free of charge.