Mumbai, Aug 10: Centre is planning to divest part of its residual stake in erstwhile state-owned companies -- VSNL, CMC, IPCL and IBP -- through a public issue by December 2003 - January 2004 with special consideration for small investors' interest. The government would like to sell part of its residual stake in former PSUs through an IPO keeping in mind small investors' interest in the process. The advisors for the public issue would be selected through competitive bids, Union Disinvestment, IT and Communications Minister Arun Shourie told reporters after he was felicitated by Investors' Grievances Forum here late last night.
Shourie said as per the share holders' agreement, the corporates and business houses, which picked up strategic stake in the former PSUs, would get first right to raise their holdings to 51 per cent. "When corporates hold 51 per cent stake, they have a sense of comfort about the control on the affairs of the company," the minister said. The government would take investment bankers' advise for pricing acquisition of its stake. The price per share for proposed transactions is unlikely to be same as the strategic investors paid while acquiring controlling stake, Shourie added. Bureau Report