Indian Government to Inform Share Sale Plan of State Organizations Soon

In the next Fiscal year, Indian government is planning to disinvest Rs 24,000 crore (1 crore= 10 million) of shares of state run organizations in the share market. As a result, the Indian share market will get a boost with this news. The stock exchanges in India has seen strong enthusiasm in the last few months. The government will declare the policy by March on sale of these shares.

Money Control reported:

And the primary route for this fund raising will be through initial public offers, or the listing-led approach, rather than follow ons. "FPOs (folow on public offers) will happen only if companies need money," Mitra said. The government plans to list 60 unlisted public sector units, and may even ask for dividend before divesting cash rich companies, he added.

The big one for the government, the NTPC public issue coming up next month, is likely to raise about Rs 8,000 crore, Mitra said.

The Congress Party led government could get decisive majority in Election 2009 and they are not dependent on the support of the left parties. As a result, now, it is easier to go ahead with the disinvestment policy.