PSUs are catching the IPO bug. In January, three major PSUs, UTI Asset Management Company, Bharat Sanchar Nigam (BSNL) and State Bank of India (SBI) announced their intent of mobilising funds from the country’s white hot primary market, even as the top brass of Coal India is considering a proposal to seek the government’s permission for listing on the bourses.
Decoding the rush
The Left parties, as expected, have put a spanner in the works of BSNL’s proposal, but UTI, India’s oldest mutual fund house, has already filed the Draft Red Herring Prospectus with SEBI to enter the capital market soon with an offer for sale of 48.5 million equity shares of Rs 10 each; the shares will be offloaded by its four sponsors—SBI, LIC, Punjab National Bank and Bank of Baroda.
Then, a number of public sector banks have lined up follow-on public offers. Among them are Canara Bank, Syndicate Bank, UCO Bank and United Bank of India. It’s time more PSUs hit the stock markets.
— Amit Mukherjee