The Government of India is selling its peoples wealth – PSU companies to Foreign Investors [upto 60% of the IPO] without even first offering the Pie to Indians on whose wealth these companies have been built. After critics and objections from us, the Government has now come out with a proposition to offer shares of all PSUs taking the IPO route at 5% discount to retail Individual investors. The idea is to get more Indians to invest in these Government Bluchips.
The eGOM have appoved the IPO of Satlaj Jal Vidut Nigam – a JV between Govt of India and Himachal State Government. This company had a profit of Rs 725 crore in FY09 and is once again clean energy company 🙂 The Valuation of this company is pegged at INR 20,000 cr and thus the IPO is likely to be of Rs 2,000 cr.
Other Follow on Public Offers – FPOs are likely in REC, NTPC and SAIL.