Market regulator Securities and Exchange board of India (SEBI) may grant exemption to some Public Sector Banks, other PSUs to meet the 25% minimum public shareholding norms by August 2024, government sources with knowledge of the matter told CNBC-TV18.
The sources said that these lenders and other Central PSUs are likely to meet the 25% public shareholding norms 'gradually.'
While sources said that state-run lenders are raising capital via Qualified Institutional Placement (QIP), the government's stake is also getting diluted in the process. However, the sources further added that there is no plan for a direct share sale in any Public Sector Bank currently.
Five state-run banks - Indian Overseas Bank, UCO Bank, Central Bank of India, Punjab & Sind Bank and Bank of Maharashtra have government stake in excess of 75%.
At the current market price, these five public sector banks have unsold government stake (above 75%) which is valued at over ₹65,000 crore.
Besides state-run lenders, there are other government enterprises like IRFC, SJVN among others, where the government stake is in excess of 75%.
CNBC-TV18 had reported in February this year that, over the last 12 months, the central government has divested its holdings in six Public Sector Units (PSUs), including notable names like Hindustan Aeronautics Ltd., RVNL, SJVN, Coal India, HUDCO, and NHPC. Among these, the shares of four companies have already doubled from their Offer for Sale (OFS) floor price.
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