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 31 August 2019, of the total of 339 Central Public Sector Enterprises (CPSEs) and subsidiaries of CPSEs, only 63 are listed. 60 of these are listed at BSE, which constituted 8.1% of the total market capitalisation of 4742 companies listed at BSE. In addition, 23 Public Sector Banks (PSBs) with their subsidiaries and 5 State Level Public Enterprises (SLPEs), accounted for another 0.44% of the total market capitalisation at BSE. Thus all PSUs together constituted 8.54% of the total market captalisation at BSE or Rs. 12.04 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 31st March 2018), there are as many as 100 3-year profit making CPSEs that are still unlisted (Click here for details). Further, with the SEBI guidelines for listed PSUs to have a minimum 25% public shareholding, a large number of PSU public offers are now in the pipeline. At current prices, this could mean a divestment amount of over Rs. 20761.81 crore. Click here for details. A large number of unlisted profit making PSUs too are expected to launch their IPO.
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.