Centre works on identifying PSUs fit for listing, boost investor interest: Report

This strategic move forms part of the government's broader efforts to enhance value creation in listed entities and unlock the potential of unlisted companies.

In a move aimed at capitalising on heightened investor interest and unlocking potential value, the government has embarked on identifying state-run enterprises for listing, reports The Economic Times. This initiative follows a surge in market valuations of its listed firms.

Sources familiar with the matter told ET that the National Seeds Corporation and Central Warehousing Corporation are likely candidates for the initial phase of listing. Additionally, plans to expedite the listing of ECGC, a key player in India's export credit insurance market with an 85 percent share, are underway.

Data from the Department of Investment and Public Asset Management (DIPAM) indicates there are 170 unlisted non-financial central public sector enterprises (CPSEs). However, entities in strategic sectors such as atomic energy, space, and defence are likely to be excluded from the listing process, as per insiders.

"The objective is to explore the feasibility and develop a roadmap for listing more CPSEs," shared an anonymous source with ET. Discussions have commenced on which companies should be listed and the timeline for implementation.

This strategic move forms part of the government's broader efforts to enhance value creation in listed entities and unlock the potential of unlisted companies. Officials anticipate that listing state-run firms will bolster corporate governance standards and sharpen their competitive edge in the market.

The ET report also added that despite challenges like market fluctuations and external factors impacting strategic sales, the government remains committed to continuing minority stake disinvestments. The strategy has already shown promising results, with increased profitability and market capitalization of CPSEs in recent years.

Moneycontrol could not independently verify the report.

Data from DIPAM reveals that the market value of the government's holdings in 62 listed non-financial CPSEs and 16 banks and financial institutions has surged more than fourfold in about three years to nearly Rs 49 lakh crore. The overall market capitalisation of these entities has also grown substantially, exceeding Rs 73 lakh crore.

Eight companies, including IDBI Bank, NMDC Steel, and Shipping Corporation of India, are progressing through the strategic sale process beyond the initial expression of interest stage, while five others remain in the initial stage.