: Amid its plans to hit the capital market
with the follow-on public offer next week, power major NTPC is likely to get
the coveted status of 'Maharatna', which will give it more financial and
Once a PSU gets the 'Maharatna' status, it will have more autonomy and can take
investment decisions for up to Rs 5,000 crore without the government approval
against the present limit of Rs 1,000 crore.
NTPC's bright chances of getting the 'Maharatna' status would attract
investors' attention. The government is also planning the Frech auction route
for the FPO. Under the French auction route, the highest bidder under the
institutional category (QIB) will be allotted shares.
The government is planning to divest its 5 percent stake in NTPC through FPO.
The divestment is expected to bring in nearly Rs 10,000 crore to the exchequer
going by the current market value of the company.
Secretary in the Department of Public Enterprises Bhaskar Chatterjee had
recently said, "We hope to confer the Maharatna status in about 10 days...
as of now four PSUs appear to be there." NTPC, IOC, ONGC and SAIL are the
four vying for the tag.
Of the 18
Navratnas companies SAIL, ONGC, NTPC and IOC meet the stiff criterion,
including a three-year track record of annual net profit of Rs 5,000 crore, net
worth of Rs 15,000 crore and turnover of RS 25,000 crore, besides being listed
on the bourses.
top PSUs are accorded the Navratna status and there is no Maharatna status.
SAIL, another candidate for 'Maharatna' status, is also expected to hit the
capital market in the next financial year in pursuance of the government's
disinvestment programme of the government under which profit-making PSUs will
be required to go public and offload at least 10 percent equity.
the government had said 60 state-owned companies are likely to hit the capital
market in the next couple of years, with steel giant SAIL and coal major CIL coming
out with IPOs in the next fiscal itself.
First Published: Sunday, January 31, 2010, 16:40