These five PSUs are eligible to exit under SEBI's new relaxed delisting norms

While there are more than 20 non-compliant PSUs as on date, the capital market watchdog has allowed the new avenue only for non-banks, non-NBFCs and non-insurance firms.

The Securities and Exchange Board of India (SEBI) has approved a relaxed set of rules for delisting for public sector undertakings (PSUs) where the government holding is 90 percent or more.

While announcing the new regulatory framework on Wednesday, SEBI chairman Tuhin Kanta Pandey said that only five listed PSUs would be eligible to use the new route.

The new set of rules have been designed to facilitate the delisting process at a time when such companies cannot further bring down the promoter – in this case, the government – stake to 75 percent to comply with the minimum public shareholding norms.

The five eligible companies are KIOCL, HMT, ITI, State Trading Corporation and Fertilisers & Chemicals Travancore.

Incidentally, while there are more than 20 non-compliant PSUs as on date, the capital market watchdog has allowed the new avenue only for non-banks, non-NBFCs and non-insurance firms.

Here is all you need to know about the five PSUs that are eligible for delisting using the new route.

KIOCL
Bengaluru-based KIOCL is engaged in the business of mining with the government owning 99.03 percent stake. The company with a market capitalisation of Rs 17,165.93 crore has a little under 37,000 retail shareholders owning shares worth up to Rs 1 lakh. Between FY24 and FY25, the number of shareholders has jumped nearly 28 percent.

The company has been a strong performer on the bourses in the recent past with the share price gaining nearly 27 percent in the last three months – it closed at Rs 281.30 on Thursday. This is significantly higher than the benchmark Sensex that has gained a little over eight percent in the same period.

While the stock is down nearly 36 percent in the last one-year period, it has gained 195 percent in the last five years – better than the Sensex return of 144 percent.

HMT
The company whose origins go back all the way to 1953 is best known for its watches though it manufactured machine tools as well – hence the name Hindustan Machine Tools or HMT. The listed firm with a market capitalisation of a mere Rs 3,139.37 crore has only around 26,240 retail shareholders with the number of such stakeholders rising 35.47 percent between FY24 and FY25. Further, the government stake is pegged at 93.69 percent.

The company has been a strong outperformer in the recent past with the shares surging more than 32 percent in the last one month – the Sensex is actually marginally down in the same period.

The 3-year and 5-year period also saw the shares of the company outperforming the benchmark Sensex with gains of 201 percent and 358 percent, respectively. Shares of HMT closed at 67.40 on Thursday.

ITI
ITI is a public sector undertaking engaged in the telecommunications technology segment with a government holding of 90.02 percent. The listed entity with a market capitalisation of Rs 29,398.34 crore has a little over two lakh retail shareholders – the highest among the five PSUs – with the number of such investors more than doubled in the last one year.

The shares of the company have also outperformed the Sensex, gaining nearly 13 percent in the last one month and around 25 percent in the last three months. Over a longer 3-year and 5-year periods as well, the stock has performed better than the Sensex with gains of 282 percent and 248 percent, respectively.

In the last six months, though, the shares saw a dip of over 12 percent even as the Sensex was up marginally. ITI shares closed at Rs 306 on June 19.

State Trading Corporation of India
The New Delhi-headquartered company under the purview of the Ministry of Commerce was, till recently, engaged in international trading of commodities business. The company with a market capitalisation of only Rs 888.6 crore is the smallest among these five PSUs in terms of valuations.

The shares of the company, however, have managed to perform well on the bourses, gaining 16 percent and 40 percent, in the last 1-month and 3-months period. It has more than doubled in the last three years while the 5-year gain is pegged at 228 percent.

The government has a 90 percent stake in the company with the number of retail shareholders pegged at around 25,500. Shares of STC closed at 145.20 on June 19.

Fertilisers & Chemicals Travancore
The Kochi-headquartered company was incorporated before India became an independent country. It was formed in the year 1943 as the first large-scale fertilizer plant in India at Kochi though production started only in 1947.

The company has a market capitalisation of Rs 64,364.25 crore and is the largest among the five PSUs in terms of valuations. The government holding is pegged at 90 percent with the company having a retail shareholder base of 83,610 – it surged 175 percent in the last one year.

In terms of share performance, the company has had a splendid run in the recent past, gaining around 70 percent in the last three months though it is up only around three percent in the last six months. Over a 3-year and 5-year period, the stock has gained a whopping 910 percent and 2225 percent. It closed at Rs 990.15 on Thursday.