History of #Disinvestment in India
1) The IPOs-1990-1998
2) CPSE to CPSE cross holdings/ Privatization– 1999-2004
3) Golden Opportunity Missed -2004-2009
4) Disinvestment Back again through OFS/FPO- 2009-2014
5) All out -Buybacks,CPSE to CPSE , ETF , OFS -2014-2019
2019-2024?
1) The IPOs-1990-1998
2) CPSE to CPSE cross holdings/ Privatization– 1999-2004
3) Golden Opportunity Missed -2004-2009
4) Disinvestment Back again through OFS/FPO- 2009-2014
5) All out -Buybacks,CPSE to CPSE , ETF , OFS -2014-2019
2019-2024?
History of #Disinvestment in India - Through Numbers.
6) 2020 - #Disinvestment Target = 1.05 lakh crores.
Until now only 12357.49 cr done through 10000 cr from CPSE ETF, 475 cr from RVNL and 1881 cr from Enemy Shares Sale. The disinvestment left is 92643 cr to be completed in 7 months.
Until now only 12357.49 cr done through 10000 cr from CPSE ETF, 475 cr from RVNL and 1881 cr from Enemy Shares Sale. The disinvestment left is 92643 cr to be completed in 7 months.
Why is this number a big one and tough one?
In 2008 FIIs sold less than 1 lakh crore in a year. The last time the government could do 1 lakh crore was in 2018 thanks to 37k crore HPCL to ONGC sale in 2018 and could do 85k crore in 2019 thanks to 14500 cr through #REC to #PFC.
In 2008 FIIs sold less than 1 lakh crore in a year. The last time the government could do 1 lakh crore was in 2018 thanks to 37k crore HPCL to ONGC sale in 2018 and could do 85k crore in 2019 thanks to 14500 cr through #REC to #PFC.
The RBI decision to transfer a sum of 1.76 lakh crore is eventually an additional 58000 cr to the government kitty above the #budget2020 provision. The #RBI dividends have been around 50k crore for a long time.
If the government can do the target without much of a #CPSE to #CPSE sale or some other asset sale it will be the largest seller of Indian #equities in a single year or in a 6-month time frame ever!! Even the highest buying by #FIIs has crossed 1 lakh cr only once in last decade.
The process also takes time - For example #IRCON OFS merchant bankers advertisement came in mid July is yet to take place. Selling through #ETFs will also need a few more tranches. Or are we looking at a creative/unconventional route to #disinvestment in coming years?
Given the #fiscal pressure look like this 1 lakh cr target of 2018, 80k crore of 2018 and now 1.05 lakh crore in 2020 makes this #disinvestment number a permanent entry in the #Budget for few years. How tough is that going to be? We will look into that in our next #tweetstorm.
So here comes the #cpse to #cpse sale. wap.business-standard.com/article/compan… but still will need another 50k cr this year.
https://twitter.com/nooreshtech/status/1169191541329428481Still not creative/unconventional yet.
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