Select PSUs rally on 'in-principle' nod for strategic disinvestment

Shares of select public sector undertaking (PSU) rallied up to 20 per cent on the BSE after the Government gave ‘in-principle’ approval for strategic disinvestment of 28 Central Public Sector Enterprises (CPSEs) with sale of majority stake of Government of India and transfer of management control.

Hindustan Petroleum Corporation (HPCL) and Dredging Corporation of India are among 28 CPSEs, which have been approved 'in principle' for strategic disinvestment by the Cabinet Committee on Economic Affairs (CCEA), Minister of State for Finance and Corporate Affairs Anurag Thakur informed the Lok Sabha on Monday.

Dredging Corporation of India was locked in the upper circuit of 20 per cent at Rs 392 on the BSE. The stock witnessed 28-fold jump in trading volumes today. A combined 4.8 million shares, representing 17 per cent of total equity of the company, changed hands on the BSE and NSE till 03:00 pm.

The company offers four types of dredging services, namely maintenance dredging, capital dredging, beach nourishment and land reclamation. They do dredging mainly for Indian seaports, though occasionally they dredge at foreign seaports in countries such as Taiwan and Dubai.

Bharat Petroleum Corporation (BPCL) hit a new high of Rs 548, up 6 per cent, while Shipping Corporation of India (up 11 per cent at Rs 69.65) and India Tourism Development Corporation (ITDC) (up 10 per cent at Rs 419) touched their respective 52-week highs on the BSE.

Scooters India was locked in upper circuit of 5 per cent at Rs 33.70, while Hindustan Petroleum Corporation (HPCL) gained 4.5 per cent to Rs 303 in intra-day trade today.

Besides, in certain other CPSEs, policy of minority stake sale without transfer of management control through various SEBI approved methods, are being followed in order to unlock the value, promote public ownership and higher degree of accountability.

The Minister further stated that the Cabinet Committee of Economic Affairs (CCEA) is mandated to approve strategic disinvestment of CPSEs. There is no approval yet of the CCEA with regard to strategic disinvestment of BPCL, Container Corporation and Shipping Corporation of India. CLICK HERE TO FULL LIST

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