Search the Internet          Tips  Sites: Finance, Investment

Patil favours divestment of PSUs through open market sale

Joining the ongoing debate on choosing strategic route or public offer for divestment, Heavy Industries and Public Enterprises Minister Balasaheb Vikhe-Patil on Tuesday favoured divestment in PSUs under his charge through open market sale of 25 per cent equity.

"We want to divest 25 per cent stake in all PSUs under my ministry. This could slowly go up to 49 per cent. I am in favour of public issues of various PSUs for better market valuation," Patil said on the sidelines of the annual session of Society of Indian Automobile Manufacturers here.

The public sector Bharat Heavy Electricals Ltd is also under his charge.

He said new guidelines for valuations in such cases would be issued soon.

"The valuations conducted earlier did not reflect the true values of the companies," Patil said explaining the rationale for the fresh guidelines for valuations.

He said the government would soon come out with a public offer for BHEL, but declined to comment on the extent of equity to be divested to the public.

An inter-ministerial task force was set up under the heavy industries secretary B N Jha to prepare a road map for BHEL, including improving profits and exports.

About the divestment of Scooters India Ltd, Patil said there was lack of interest among companies for taking equity in the PSU.

ALSO READ:
The Divestment Development
More Money Headlines