PSU make a splash at stock markets

<div class="section1"><div class="Normal">CHANDIGARH: The stock market is to enter into record books as out of the 56 issues to hit the market in 2004, around 15 are public sector undertakings, which alone amount to over Rs 17,000 crore.<br /><br />The earlier record was in 1994-95, when the government had offered similar issues amounting to Rs 13,312 crore, but now that record has been broken with total issues amounting to Rs 40,000 crore, said V Kumar, a stockbroker of Vikson Financials.<br /><br />The government, in order to meet the target for this fiscal year, is disposing off about 10 per cent of the equity this period, he said and adds as the per centage of investors is picking up in Punjab and Haryana, it will be the right time to invest.<br /><br />The feel good factor and the growth of industry have helped both the public and private sectors to go in for the public offer, said Kumar.<br /><br />Those days are gone when a few segments like cement and steel in the 1990, followed by financial companies and ICE (information technology, communication and entertainment) dominated the stock market, said an official from Gas Authority of India Ltd.<br /><br /><formid=367815><br /><br /></formid=367815></div> </div><div class="section2"><div class="Normal"><br />CMC Ltd is a company taken over by the Tata''s but this offer is from the President of India, said Kumar.<br /><br />The public issues range from oil companies including ONGC, GAIL, IBP and in the banking segment, a host of banks including Central Bank of India, Punjab and Sind Bank, Bank of Maharastra and Dena Bank are in the pipeline.<br /><br />The government is offering the floor price for CMC public offer at Rs 620 per share and that for IBP at Rs 475. The floor price has been set at 12-14 per cent discount to the last traded prices. <br /><br />It has also decided that the small investors-those investing up to Rs 50,000 in an issue-would be given a discount of 5 per cent on the offer price that would be decided after the issue closes,'' said VK. Joshi, another stockbroker.<br /><br />It is only a matter of timely action, which help you gain from your investments, said Joshi.<br />The government feels every one should get into the IPO-phobia, which began last year with companies like Maruti come out with the offering. <br /><br />It also feels that the public should invest in shares as the industry is doing well and also that it is not advisable to keep money in banks due to the low interest rates, said S L Sethi, former deputy registrar of Punjab University. <br /><br /><formid=367815><br /></formid=367815></div> </div>