The SEBI announcement on Thursday to bring down government holdings from the current 90 per cent to 75 per cent will not only revive the primary markets, it will also add up government coffers. SEBI has asked PSUs to bring down their holdings over the next three years.
We looked at the companies where the government holdings is above 75 per cent necessitating them to dilute their holdings (See: Stake sales on anvil). Collectively these listed companies will have to dilute around ₹61,000 crore assuming their current valuations and 11 per cent stake sale needed to bring down their holdings to 75 per cent. Interestingly, one single company; Coal India accounts for more than 50 per cent of this huge sum.
Stake sales on anvil
| Company Name | Government holdings (%)* | Dilution (%) | Market cap ₹cr)# | Dilution Value (₹cr) |
| Coal India | 89.65 | 14.65 | 244064 | 35755 |
| NMDC | 80 | 5 | 70136 | 3507 |
| NHPC | 85.96 | 10.96 | 28950 | 3173 |
| Neyveli Lignite | 90 | 15 | 16433 | 2465 |
| SAIL | 80 | 5 | 39157 | 1958 |
| Hindustan Copper | 90 | 15 | 10469 | 1570 |
| MRPL | 88.58 | 13.58 | 11497 | 1561 |
| SJVN | 89.97 | 14.97 | 10238 | 1533 |
| MMTC | 90 | 15 | 9695 | 1454 |
| Central Bank Of India | 88.63 | 13.63 | 10392 | 1416 |
| HMT | 90 | 15 | 5846 | 877 |
| NALCO | 81.06 | 6.06 | 14420 | 874 |
| NBCC | 90 | 15 | 3701 | 555 |
| Indian Bank | 81.51 | 6.51000000000001 | 7981 | 520 |
| Bank Of Maharashtra | 85.21 | 10.21 | 3982 | 407 |
| State Bank Of Mysore | 90 | 15 | 2680 | 402 |
| Fertilisers & Chemicals Travancore | 90 | 15 | 2384 | 358 |
| National Fertilizers | 90 | 15 | 2220 | 333 |
| United Bank of India | 88 | 13 | 2505 | 326 |
| MOIL | 80 | 5 | 5394 | 270 |
| IDBI Bank | 76.5 | 1.5 | 16609 | 249 |
| UCO Bank | 77.2 | 2.2 | 10243 | 225 |
| State Trading Corporation | 90 | 15 | 1316 | 197 |
| RCF | 80 | 5 | 3776 | 189 |
| ITDC | 87.03 | 12.03 | 1280 | 154 |
| State Bank Of Travancore | 78.91 | 3.91 | 3530 | 138 |
| Punjab & Sind Bank | 81.42 | 6.42 | 1942 | 125 |
| Andrew Yule | 90 | 15 | 810 | 122 |
| ITI | 90 | 15 | 796 | 119 |
| Haryana Financial Corp. | 97.28 | 22.28 | 512 | 114 |
| Scooters India | 93.74 | 18.74 | 272 | 51 |
| Dredging Corporation | 78.56 | 3.56 | 1198 | 43 |
| BEL | 75.02 | 0.02 | 15691 | 3 |
| Total | 560120 | 61042 | ||
| *As per shareholding pattern data on March 31, 2014 / # As on June 19, 2014 | ||||
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
