Indian PSU IPOs and FPOs in 2011

Indian PSU IPOs and FPOs in 2011

According to Economic Times, The Government of India is planning to launch 1 IPO/FPO every 16 days from now onwards for next 5 months for its various already listed PSUs (Public Sector Units).

FPO means Follow-on offers means the public issue of already listed companies.

Here is a List.of PSUs & the approximate size of the IPOs in Indian Rupees.

01) Manganese Ore India (MOIL) – Rs.3000 Crores

02) Power Grid Corporation – Rs. 8800 Crores

03) Hindustan Copper – Rs.8050 Crores

04) Oil & Natural Gas Corporation (ONGC) – Rs. 14,442 Crores

05) Steel Authority of India (SAIL) – Rs. 8922 Crores

06) Shipping Corporation of India – Rs. 1516 Crores

07) Indian Oil Corporation (IOC) – Rs.19,870 Crores

Power Grid is open for subscription on November 8 2010.

Thus, Year 2011 is really a great investment opportunity for the Indian citizens. All of these PSUs have past proven record of excellent performance.

And that’s why all the IPOs are investment worthy. I advise investors to save money for these future IPOs. Recently after a grand success of Coal India IPO, it is now clear that the government is willing to give shares of these PSUs at fair valuations.

The only problem with FPOs is that, these companies are already listed on the stock exchanges and that’s why the government will have to price these IPOs very carefully to avoid any problem. This ie because any major difference in the market price and the offer price will lead to the failure of that IPO.

In the past, the same thing had happened with NTPC and Miner NMDC which was bailed out by LIC and SBI.

Anyways…So let’s hope for the good new year…!!!

Investors – Save your money for these IPOs.