The market regulator SEBI, in the past few days, brought a number of changes in its listing norms. It has notified the Institutional Placement Programme (IPP) guidelines to allow companies to reduce promoter shareholding through private placement. This move is expected the aid government in its divestment process.
Further, SEBI has also removed the block deal option, so that promoters can meet 75% threshold. However, Jagannadham Thununguntla of SMC Global feels that this move won't make a big difference. "The auction window is more or less of a similar pattern like the bulk deal, block deal. What can be achieved through bulk deal block deal it can also be achieved through auction mode, he told CNBC-TV18. "Eight PSUs (including STC, MMTC, RCF and National Fertilizers) in which the government holds more than 90% stake are likely to get impacted. In the private sector, stocks like DLF, Reliance Power, Godrej Properties, and Godrej Industries will be in action in the next one year to meet this norm, he added. Thununguntla believes, given the current market condition, one will have to see if these companies are able to complete the procedure even through the IPP route. Below is the edited transcript of ThununguntlaDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
