Government may hold on to ITC, L&T shares despite review
.jpg)
NEW DELHI: The government may hold on to its shares in blue chips such as ITC and L&T despite the Specified Undertaking of Unit Trust of India (SUUTI) seeking bids from merchant bankers to advise the agency on its holdings that span across sectors.
While several experts have suggested that SUUTI, which is wholly owned by the government, sell some of the marquee stocks instead of divesting stake in PSUs to raise money, a source in the government said that rushing in with the sale may not be prudent.
"You need to look at the kind of returns that some of the large companies have offered and the potential that is still there given that they operate in strategic sectors or in segments of the economy that will benefit from the rising purchasing power. In addition, some of the companies have an excellent track record of paying dividends. This has to be budgeted for," said a source, who did not wish to be identified.
SUUTI has inherited the shares from the erstwhile Unit Trust of India, after clearing the liabilities, but has held on to several stocks, raising eyebrows.
In a request for proposal from advisers, SUUTI has listed 51 companies, which include Here MotoCorp, Tata Steel, Sun Pharma and Reliance Industries. L&T (Rs 8,800 crore), ITC (Rs 22,364 crore) and Axis Bank (Rs 15,000 crore) could almost fetch around Rs 45,000 crore. While the government is open to diluting SUUTI stake in Axis Bank, it has been averse to selling ITC or L&T shares. While officials repeatedly cite "strategic projects", ranging from submarine and other defence-related equipment to reactors to justify holding on to L&T shares, in case of ITC it is the perceived takeover threat from foreign players that has prompted the Centre to let SUUTI retain its equity.
In addition, sources said, new fund-raising avenues such as buybacks would help meet the divestment target, in addition to other measures to speed up the process.
Other Latest News
.webp)
The Enforcement Directorate has filed a money laundering case against YouTuber Siddharth Yadav alias Elvish Yadav and some others under the charge of suspected use of snake venom as a recreational drug in parties he hosted, official sources said Saturday.
The central agency has pressed charges under the Prevention of Money Laundering Act (PMLA) after taking cognisance of a FIR.
.webp)
A flood and a landslide hit Indonesia's Sulawesi island, killing 14 people, officials said Saturday.
Torrential rain pounding the area since Thursday triggered a landslide in Luwu district in South Sulawesi province, said local rescue chief Mexianus Bekabel.
.webp)
India's largest port operator Adani Ports and Special Economic Zone Limited (APSEZ) is looking to expand its operations into the Philippines, with plans to invest in port development, according to a release issued by the office of the president of Philippines.
APSEZ Managing Director Karan Adani met with the Philippines President Ferdinand Marcos Jr at Malacañang on May 2 in a courtesy call to discuss Adani Group's plans for the port.
.webp)
The Securities and Exchange Commission on Friday charged an auditing firm hired by Trump Media and Technology Group just 37 days ago with massive fraud though not for any work it performed for former President Donald Trump's media company.
The SEC charged the accounting firm BF Borgers and its owner, Benjamin F. Borgers, of deliberate and systematic failures in more than 1,500 audits.
.webp)
India's markets regulator has sent notices of regulatory violations to seven companies of the Adani conglomerate, including its flagship Adani Enterprises, the group said in stock exchange filings.
The regulator began probing the Adani group, led by billionaire Gautam Adani, after Hindenburg Research in January 2023 alleged improper use of tax havens and stock manipulation by the group, accusations the group has denied.
.webp)
.webp)
.webp)
.webp)
.webp)
