NSE CPSE-BSE CPSE Indices showcase returns of 160.49%-128.66%, as of Nov 2023
Calls have been made for Expression of Interests (EoIs) for the ongoing strategic disinvestment of IDBI Bank Limited, PDIL, HLL Life Care Limited, NMDC Steel Limited, Shipping Corporation of India, and BEML Ltd, Ministry of Finance said in its year-end review on 27 Dec 2023.
Looking ahead, the Ministry’s Department of Investment and Public Asset Management (DIPAM) is actively pursuing strategic disinvestment in these entities.
One of the key highlights in 2023 was the emphasis on value creation in Central Public Sector Enterprises (CPSEs). Since the introduction of the New PSE policy in January 2021, the NSE CPSE and BSE CPSE Indices have surpassed benchmarks, showcasing returns of 160.49% and 128.66%, respectively, until November 2023.
In the realm of Initial Public Offerings (IPO), DIPAM has successfully launched the IPO for the Indian Renewable Energy Development Agency (IREDA).
The Offer for Sale (OFS) route has been actively pursued by the government for divesting its shareholding in CPSEs.
Noteworthy transactions in CPSEs like HAL, Coal India Limited, RVNL, SJVN Limited, and HUDCO have collectively yielded Rs.10,860.91 crore. The stocks involved generally experienced an uptrend post-OFS, contributing to capital gains for investors.
DIPAM’s has also implemented a Consistent Dividend Policy over the years, with the total dividend receipts from CPSEs in FY 2022-23 at an impressive Rs.59,533 crore, surpassing the Revised Estimates.
In the current fiscal year, the government has realised Rs.26,644 crore as dividend receipts from CPSEs as of 4 Dec 2023.
Following are some of the major achievements of the DIPAM in 2023:
Value creation in CPSEs prioritized through balanced capital management policy and planning disinvestment transactions at right price and right time without value erosion.
Since the announcement of New PSE policy in January 2021, the Nifty 50 and BSE SENSEX have registered a rise of 44.00% and 40.29%, respectively, whereas the NSE CPSE and BSE CPSE Indices have outperformed with a big margin with returns of 160.49% and 128.66% respectively till November, 2023.
CCEA accorded approval for the Initial Public Offering (IPO) of Indian Renewable Energy Development Agency (IREDA) on 17 Mar 2023.
The IPO of IREDA, a state-run non-banking financial company (NBFC) was launched on 21 Nov 2023.
IREDA was successfully listed on the stock Exchanges on 29 Nov 2023.
With IREDA IPO, Government has realized Rs.858.36 crore as Disinvestment Receipt.
Company has realized approximately Rs.1,290 crore through issue of 15% fresh equity.
The Government has continued to divest its shareholding in CPSEs through the Offer for sale (OFS) route.
Since January 2023, OFS transactions were carried out in HAL, Coal India Limited, RVNL, SJVN Limited and HUDCO and the Government realized Rs.10,860.91 crore (HAL – Rs.2,910.39 crore, Coal India – Rs.4,185.69 crore, RVNL – Rs.1,365.61 crore, and SJVN – Rs.1,349.27 crore, HUDCO Rs.1,049.95 crore) through these transactions. Fiinews.com
