Government PSU IPOs & FPOs in FY 2011-12 Review

Government PSU IPOs & FPOs in FY 2011-12 Review

There are lots of great Public Sector Units (PSU) in India. And the Government of India is planning to divest 5-10% in these PSUs. Currently many of them are listed publically and in many PSUs, the government owns 100% of stake.

However, after divesting, the government will still be the majority stake holder in these PSUs.

Here is a list of PSUs which government is planning to divest to raise more capital by IPOs and FPOs.

Name of PSU	Proposed Divestment	Current Stake (%)
AMMTC	10	99.3
Cochin Shipyard	10	100
RINL	10	100
NALCO	10	87.2
PFC	10	89.8
Neyveli Lignite	10	93.0
Bharat Electronics	10	75.9
Concor	05	63.1
BHEL	05	67.7

 

We will see the IPOs of two government sector companies in the year 2011-12 – Cochin Shipyard and RINL while FPOs of many PSUs like AMMTC, NALCO, PFC, BHEL, Concor, Bharat Electronics and Neyveli Lignite.

All of these are the best public sector companies operated by Government of India.

What I personally like about government of India is that, the offering price of shares of these government sector companies is really attractive. Recently, Coal India has given a fair valuation price per share to the retail investors.

The government IPOs & FPOs are never overpriced and all the government sector companies are fundamentally very strong. Thus, save money for the future IPOs & FPOs by the Indian government companies.

All of them are fundamentally strong companies. So invest in all of them with a long time horizon keeping in mind. Long time horizon means time horizon more than 10 years.