Big Gains to Government

Suresh Prasad (www.aubsp.com) (15630 Points)

23 November 2010  

Big Gains to Government

A study by Delhi-based PRIME Database has shown that the Government has made huge gains in recent PSU IPOs.

 

COMPANY

IPO MONTH

POST IPO GOVT. HOLDING (%)

POST IPO GOVT. HOLDING (No. of Shares in crores)

OFFER PRICE (Rs.)

VALUE OF GOVT. HOLDING ON ISSUE DATE (Rs. crore)

MARKET PRICE AS ON 19.11.2010 (Rs.)

VALUE OF GOVT. HOLDING AS ON 19.11.2010 (Rs. crore)

GAIN/ LOSS
(Rs. crore)

% GAIN/ LOSS

NTPC LTD.

Oct-2004

89.50

737.96

62.00

45753.73

184.30

136006.66

90252.93

197.26

 

POWER FINANCE CORP.LTD.

Jan-2007

89.78

103.05

85.00

8758.83

339.55

34988.93

26230.10

299.47

 

POWER GRID CORP.OF INDIA LTD.

Sep-2007

86.36

363.49

52.00

18901.49

101.15

36767.10

17865.61

94.52

 

RURAL ELECTRIFICATION CORP.LTD.

Feb-2008

81.82

70.25

105.00

7376.67

347.40

24406.24

17029.57

230.86

 

NHPC LTD.

Aug-2009

86.36

1062.34

36.00

38244.13

29.10

30914.00

-7330.13

-19.17

 

OIL INDIA LTD.

Sep-2009

78.43

18.86

1050.00

19802.95

1397.65

26359.62

6556.67

33.11

 

TOTAL

 

 

 

 

138837.80

  

289442.55

150604.75

108.48

 

 

(Only PSU IPOs since 2004 onwards, with a listing period of over 1 year have been considered in the study)

 

As can be seen, the Government has made a notional gain of over Rs. 150605 crore or 108% in these 6 IPOs alone as on 19.11.2010