Thursday, 1 March 2012
PSU share buyback: Govt may raise Rs 20000cr
The proposal will allow the government, which has not been able to reach anywhere near the disinvestment target of Rs 40,000 crore in 2011-12, to raise funds by selling its stake in the PSU to the same undertaking. The government till date it has been able to raise only Rs 1,145 crore from PFC. Its sale of stake in ONGC through the auction route may fetch another Rs 12,000-13,000 crore.
The Cabinet has allowed state-run companies to buy back shares . In an interview to CNBC-TV18, Portfolio manager PN Vijay says, buyback is a very sensible thing to do. "I think government will raise about Rs 20,000 crore without much problem, without affecting the companies and without disturbing their debt profile too much.
The Cabinet has allowed state-run companies to buy back shares . In an interview to CNBC-TV18, Portfolio manager PN Vijay says, buyback is a very sensible thing to do. "I think government will raise about Rs 20,000 crore without much problem, without affecting the companies and without disturbing their debt profile too much.
