Bombay Stock Exchange launches bsepsu.com

Nifty BSE | NSE 31/05/12 Are Mutual Funds betting on Nifty?

Bombay Stock Exchange (BSE) today unveiled a new website that it has created with a total focus on Disinvestments. This website: www.bsepsu.com was launched by Shri 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% of the total market capitalization at BSE.

According to 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."