Govt approves listing of 11 CPSEs on stock exchange

Fulfilling a Budget commitment, the government on Wednesday approved listing of 11 central public sector enterprises (CPSEs), including four from railways, on the bourses.

Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi gave its approval for listing of the CPSEs including Rail Vikas Nigam  (RVNL), IRCON International, Indian Railway Finance Corporation (IRFC) and Indian Railway Catering and Tourism Corporation (IRCTC).

Listing of CPSEs will be through public offer of the government shares up to 25%. It may also include offer of fresh shares for raising of resources from market. However, actual disinvestment in respect of each CPSE along with the mode of raising resources has been delegated for decision on a case to case basis to the Alternative Mechanism, headed by Finance Minister Arun Jaitley, the statement said.

Presenting the Union Budget 2017-18 in February, Jaitley had said that the shares of Railway Public Sector Enterprises (PSEs) like IRCTC, IRFC and IRCON will be listed in stock exchanges.

The CCEA has also approved reservation of shares for the eligible employees of 11 CPSEs in accordance with the extant provisions of Sebi regulations.