Govt to Tap Cash Rich PSUs like BSNL before Public Issues

As all of you know that, Government of India is planning to divest its various Businesses this year to raise the Capital. And as an initial step, it has taken NHPC (National Hydro Power Corporation) to the public. The NHPC IPO was a great success. Indian People have shown tremendous response in NHPC IPO.

Here are the Cash Rich PSUs -

01) BSNL – Over Rs.35,000 Crore

02) Coal India – Over Rs.25,000 Crore

03) NMDC – Rs.5950 Crore

04) Neyveli Lignite – Rs.4750 Crore

The government of India will mop up around Rs.10,000 Crore by way of Special dividends from some Cash-rich companies run by it, ahead of planned public issues aimed at enhancing public ownership.

The intent of the government is not to strip these companies of their assets but large amounts of cash in banks reduce overall rate of return on Capital. The move will not affect the Valuation of the Companies.

In short, all of the above PSUs are Cash Rich Companies and that’s the amazing thing. So Get ready for the IPOs of these great Indian Companies. Buy their Shares and be the Owner of these world’s greatest Companies.