7 power PSUs to list by '06

13th April 2006: PFC, PowerGrid and NHPC among others in queue. The next few months are likely to see a flurry of power utility public offers as the power ministry has set December 31, 2006 as deadline for listing seven public sector undertakings under it.

These include National Hydroelectric Power Corporation, North Eastern Electric Power Corporation Ltd, Satluj Jal Vidyut Nigam Ltd, Tehri Hydro Development Corporation Ltd, Rural Electrification Corporation, Powergrid Corporation and Power Finance Corporation.

Of the seven, Power Finance Corporation is expected to hit the market some time in May. PowerGrid, too, is reported to be working on selling up to 10% of its equity.

“We are coming out with an initial public offer by December this year on the lines of IPOs of companies like NTPC,” the PowerGrid Chairman and Managing Director RP Singh said.

At the moment, two power PSUs are listed on the stock market. NTPC Ltd raised Rs 2,684 crore from its 10% float in November 2004, while Power Trading Corporation raised Rs 94 crore in March 2004.

“It is not an impossible deadline to achieve and we intend to meet it,” a power ministry official said. The ministry has not yet arrived at the sum that these disinvestments will garner. “It is too premature to talk of what can be raised,” he added.

Extension of Date of Ensuring Compliance with Revised Clause 49 of the Listing Agreement

12th April 2005: Circular No. SEBI/CFD/DIL/CG/1/2005/29/3 Dated 29.03.2005: All Stock Exchanges had been directed to amend the Listing Agreement by replacing the existing Clause 49 of the listing agreement with the revised Clause 49. Also, they were asked to set up a separate monitoring cell with identified personnel to monitor the compliance with the provisions of the revised Clause 49 on corporate governance. Realising that all listed companies and companies desirous of getting listed should achieve best corporate governance status, it was felt that more time should be allowed to them to conform to revised Clause 49 of the listing agreement. Hence, the date for ensuring compliance has been now extended; vide this circular, upto December 31, 2005.

SHIPPING CORPORATION OF INDIA MAY BE DELISTED.

24th August 2002 A successful bidder of Shipping Corporation of India may be able to delist the Shares of Shipping Corp of India if all the shareholders put their shares in the open offer. A successful bidder of Shipping Corp. of India has to make a public Offer to the remaining shareholders under the SEBI Takeover Regulations to buy Out shares of atleast 20% of shareholders at the minimum price at which the bidder has purchased the shares from the Government of India. In this open offer if all the shareholders offer their shares, then the Shipping Corp. of India will be allowed to delist its shares. Earlier Government wanted a waiver from the SEBI open offer requirement under the Takeover Regulations but SEBI denied the exemption from the Takeover code therefore the acquirer of the Shipping Corp. Of India will have to make an open offer to the existing shareholders of Shipping Corp of India Ltd.