Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
ET Markets
11,258.65-72.4
Stock Analysis, IPO, Mutual Funds, Bonds & More

Govt preparing list of profit-making arms of CPSEs for listing

Currently, profit making CPSEs with a minimum net-worth of Rs 500 crore are listed on the exchanges.

PTI|
Apr 02, 2019, 07.45 PM IST
0Comments
Getty Images
Stock20-Getty-1200
In 2017-18, there were 257 operational CPSEs, of which 184 were profit making.
New Delhi: The Finance Ministry is in the process of shortlisting profit making subsidiaries of CPSEs having a minimum stipulated net-worth, which can be listed on the stock exchanges, an official said.

Currently, profit making CPSEs with a minimum net-worth of Rs 500 crore are listed on the exchanges.

The Department of Investment and Public Asset Management (DIPAM) will be consulting administrative ministries and central public sector enterprises (CPSEs) before finalising the names of the subsidiaries for the stock exchange debut.

"We are drafting a list of subsidiaries of CPSEs which can go in for listing through initial public offer. The net-worth threshold for such listing too would be decided after deliberation," an official told PTI.

In 2017-18, there were 257 operational CPSEs, of which 184 were profit making.

Most of the profit-making subsidiaries of CPSEs are in coal, power and oil and gas sector.

The official said, CPSE arms having a track record of making profit for at least three years are likely to be picked up for listing.

The DIPAM, the official said, is preparing the pipeline of state-owned companies which can be listed on the stock exchanges in the current financial year or subsequent fiscals. The pipeline is necessary as the government holding in most of the bluechip CPSEs is close to 51 per cent.

Though the listing of CPSE subsidiaries will not fetch any money to the government directly but it will get money in the form of dividend from the parent company.

In 2016, the DIPAM came out with capital restructuring guidelines for CPSEs, which mandates that they must pay a minimum annual dividend of 30 per cent of profit after tax or 5 per cent of the net worth, whichever is higher.
0Comments

Also Read

Government to exit 23 CPSEs

Plan to list 10 CPSEs in current fiscal: DIPAM Secy

Finance ministry reworking strategic sale procedure for CPSEs

FinMin makes progress in strategic sale of 28 CPSEs

Big shift in disinvestment policy: Plan to privatise profitable CPSEs in works

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for Live Elections News & Results, Latest News in Business, Share Market & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service