CCEA Approves Disinvestment In ITDC And STC

As we August 8, the last date for complying with the SEBI’s listing norm, the government today got CCEA approval for the disinvestment of its stake in ITDC and STC. The government has off-loaded its stake in MMTC and Hindustan Copper during this fiscal and with the Tamil Nadu government showing an interest in purchasing Government of India’s stake in Neyveli Lignite (NLC), it is almost done disinvesting in PSUs.

The CCEA today approved an equity sale of 5% and 1.02% per cent respectively in ITDC and STC. Currently, the Government of India holds 91.02% stake in STC while its holding in ITDC stands at 92.11%. The minimum public shareholding in PSUs is now supposed to stand at 10 per cent in order to adhere to the Securities Contract (Regulation) Rules (SCRR). 

Among the profitable PSUs, apart from STC and ITDC, NFL is the only one wherein the government holds 98% stake and the OFS is expected to hit the market in July 2013. ITDC is into the business of tourism and owns a number of hotels and restaurants at various places, besides providing transport facilities while STC is a listed company in trading and marketing Syndicate, under the Ministry of Commerce and Industry.