Centre eyes stake sale in 21 PSUs as part of divestment strategy

by Nidhi Bhati

Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Pandey is counting on paring government stakes in listed entities to meet the Rs.2.1 trillion divestment target for 2020-21. The government aims to reduce its stakes in 21 listed public-sector undertakings (PSUs) to meet the 25 per cent public shareholding norm, mandated by the Securities and Exchange Board of India (SEBI). Pandey further stated that the government is planning to come up with the initial public offerings of RailTel, IRFC and WAPCOS soon. It also aims to complete the privatisation of Shipping Corporation, Concor, Bharat Earth Movers and Central Electronics before 31 March 2021. However, the DIPAM Secretary added that they are not keen on coming up with more exchange-traded funds (ETF) or offers for sale anytime soon for the same stocks as part of their divestment strategy because a market study has shown that ETFs reduce values of stocks and bring down the worth of initial public offerings (IPOs).

References
1. https://www.business-standard.com/article/economy-policy/divestment-strategy-govt-to-avoid-etf-ofs-to-protect-stock-value-120101601375_1.html
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
6.9 +1.5
Consumer Sentiments Index
Base September-December 2015
50.7 +0.4
Consumer Expectations Index
Base September-December 2015
52.8 +0.6
Current Economic Conditions Index
Base September-December 2015
47.5 0.0
Quarterly CapEx Aggregates
(Rs.trillion) Dec 19 Mar 20 Jun 20 Sep 20
New projects 5.55 3.95 0.71 0.68
Completed projects 1.66 1.75 0.24 0.64
Stalled projects 0.61 0.77 0.11 0.08
Revived projects 0.83 0.42 0.68 0.34
Implementation stalled projects 0.13 9.78 0.09 0.03
Updated on: 23 Oct 2020 8:28PM
Quarterly Financials of Listed Companies
(% change) Dec 19 Mar 20 Jun 20 Sep 20
All listed Companies
 Income -1.7 -4.9 -27.9 3.3
 Expenses -2.2 -1.9 -28.3 1.1
 Net profit -10.8 -47.3 -38.7 8.8
 PAT margin (%) 5.1 2.4 5.4 15.7
 Count of Cos. 4,435 4,273 4,184 213
Non-financial Companies
 Income -5.5 -8.9 -38.0 0.6
 Expenses -6.4 -4.9 -38.2 -3.4
 Net profit -13.9 -48.3 -57.1 13.9
 PAT margin (%) 5.7 3.4 4.4 16.8
 Net fixed assets 13.3 19.8
 Current assets 3.0 3.5
 Current liabilities 4.9 1.5
 Borrowings 14.7 2.8
 Reserves & surplus 2.1 14.4
 Count of Cos. 3,311 3,221 3,153 160
Numbers are net of P&E
Updated on: 23 Oct 2020 8:28PM
Annual Financials of All Companies
(% change) FY18 FY19 FY20
All Companies
 Income 8.4 13.3 0.6
 Expenses 9.9 13.5 1.2
 Net profit -40.4 22.3 -19.0
 PAT margin (%) 2.0 2.4 4.4
 Assets 10.9 9.3 9.4
 Net worth 7.5 8.6 5.0
 RONW (%) 3.5 4.3 6.1
 Count of Cos. 27,922 27,039 4,480
Non-financial Companies
 Income 8.6 13.8 -2.8
 Expenses 8.8 14.0 -1.6
 Net profit -9.0 23.5 -28.4
 PAT margin (%) 2.7 3.2 4.7
 Net fixed assets 7.2 5.4 13.8
 Net worth 6.1 8.5 1.9
 RONW (%) 5.7 6.9 7.6
 Debt / Equity (times) 1.0 0.9 0.7
 Interest cover (times) 2.1 2.4 2.9
 Net working capital cycle (days) 77 70 56
 Count of Cos. 22,629 21,863 3,354
Numbers are net of P&E
Updated on: 20 Oct 2020 9:02AM