Bombay Stock Exchange Ltd. (BSE) unveiled a new website that it has created with a total focus on Disinvestments. This website: www.bsepsu.com was launched by Vilasrao Deshmukh, Hon’ble Union Minister for Heavy Industries and Public Enterprises at a function held in Delhi this afternoon.
PSUs are among the largest and most profitable organizations in India. Of the total of 214 Central Public Sector Enterprises (CPSEs) and subsidiaries of CPSEs in operation, only 46 are presently listed, of which 44 are listed at BSE. Along with an additional 26 Public Sector Banks (PSBs) and their subsidiaries, and 6 other State Level Public Enterprises (SLPEs), these 76 entities account for over 30 per cent of the total market capitalization at BSE.
According to Mr. Madhu Kannan, MD and CEO of BSE, “The PSUs have the scope for even a larger role, with a large number of profitable CPSEs that are still presently unlisted. The government has already announced its intentions to keep the majority stake with itself, and not disinvest more than 49 per cent in any of the PSUs. With strategic sales also having been removed as an option, this translates into public offerings being the chosen vehicle for the government to disinvest its stake in these PSUs. This can already be seen in the forthcoming issues of NTPC, REC, NMDC and SJVN”.
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 public offerings in India, etc.
An initial step to bridge this gap was taken by the BSE by conducting the PSU CEO Conclaves across the country in which 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 process, Kannan stated that “BSE has now launched this website to provide a single, updated platform to PSUs with all information relating to disinvestments and public offerings. The website also has the first-ever comprehensive database of all past disinvestments.”
The website additionally has a IPOs/FPOs Guide for PSUs which provides a tutorial on the basics of the IPO/FPO market. Database on all past PSU IPOs/FPOs has also been provided along with the response they generated. It also includes regulations for IPOs/ FPOs, disclosure requirements, allocation process and the role of intermediaries along with a database of all key intermediaries and a list of merchant bankers to past PSU issues.
The website also contains various market related information, both current and historical such as weekly, monthly, yearly and two-yearly movements of the BSE PSU Index vis a vis the BSE SENSEX, daily ‘end of day’ movements of the stocks constituting the PSU Index, price performance of recent PSU IPOs along with a table that shows the gains the Government has made in them, PSU constituents of the BSE SENSEX and the BSE 100 with links to each of these companies, data on current PSU IPOs/FPOs and those in pipeline and market capitalisation of all the listed PSU stocks.
The Info Bank on Listed PSUs@BSE has extensive details of all PSUs that are listed at BSE including results, annual reports, board of directors, shareholding pattern, corporate announcements, offer documents, pricing information, corporate information and contact information.
There are also sections on recent Government announcements, court judgments, recent articles and publications on Disinvestments.
Kannan added that “this website would also be useful to academicians, researchers, investors as well as any person or organization, including the media, having an interest in the disinvestment of PSUs in India. Access to this website is free of charge”.