The IPO is not just a tool to raise capital for private companies. Even the government is in an attempt to raise capital with their PSU. In the last few years, the government of India has privatized, merged, disinvested, and sold shares to raise capital. Following the exercise, the government of India is planning to go with amny IPO in coming years, much likely in 2022. There are various PSUs that the government is going to file IPO to raise capital. Here, we highlighted 5 PSUs that are likely to go for IPO in 2022 or might get extended further keeping market conditions.
LIC or Life Insurance Corporation of India is not only a government-owned company, but also India's biggest IPO ever listed on the stock exchange. As per the government of India officials, the LIC IPO would be completed by the end end of march, ending FY 2021-22. Having said that, the IPO is termed as biggest in Indian IPO history and would be a key factor in Indian Capital Market growth in 2022. The Central government is working feverishly to list the LIC on the stock exchanges. Listing date, share price, and other things are yet to come. The government's reasons in favor of the LIC IPO include more accountability and openness. However, the insurance has always been accountable, with a spotless track record of safeguarding policyholders' interests.
ECGC Ltd or Export Credit Guarantee Corporation of India is a government-owned credit provide, under the ownership of the Ministry of Commerce and Industry, headquartered in Mumbai, Maharashtra. The company offers a variety of online services, including the ability for exporters and bankers to obtain information and submit documents online. Last year, Cabinet approved the IPO of ECGC. Over the next five years, the government plans to grow exports by Rs. 5.28 lakh Cr and raise ECGC's underwriting capacity by Rs. 88,000 Cr. Furthermore, a stock market listing would allow this firm to access new cash from the market, allowing it to enhance its maximum liability cover. The IPO is likely to make its debut in 2022 as the process is in pipeline with the SEBI. Other details are yet to come out.
National Seeds Corporation Ltd
National Seeds Corporation Ltd is owned entirely by the government. It comes under the administrative control of the Department of Agriculture Corporation and Farmer's welfare, Ministry of Agriculture Corporation, and Farmers Welfare. Around 8 farms and 12500 registered seed farmers are working on seed production programs in various agro-climatic settings around the country. To ensure that farmers receive the high-quality seed, NSC has devised a thorough Quality Control system. NSC has set up four Quality Control Laboratories in Bhopal, New Delhi, Suratgarh, and Secunderabad to conduct seed testing and quality control. With the IPO, the Government of India is willing to sell up to a 25% stake in the company. For the fiscal year 2019-20, NSC, a Mini Ratna PSU, made a profit after tax of Rs 29.92 crore. Its net worth was Rs 646.37 crore as of March 31, 2020. The IPO is likely to go on the floor in 2022.
WAPCOS (Water and Power Consultancy Services) is a company owned by the Government of India. It is responsible for providing services in the electricity, water, and infrastructure sectors, such as consultation, procurement, engineering, and construction. This Mini Ratna Company also provides similar services in other countries, including Afghanistan. At the beginning of the year, WAPCOS was aggressively pushing its IPO strategy. With the advent of the second wave of Covid-19, however, this took a back place. WAPCOS is currently gathering information on all of its international businesses. The procedure is likely to be completed within a few months. We may anticipate concrete development at the forefront of its public offering once the agreement is finalized.
North Eastern Electric Power Corporation Limited
North Eastern Electric Power Corporation (NEEPCO), a wholly-owned subsidiary of state-run power producer NTPC, Ministry of Power, plans to issue initial public offerings (IPOs) as part of the asset monetization effort. In addition, the NTPC is reinvesting in its other two subsidiaries. NEEPCO is beginning on a strategy to generate electricity from non-conventional sources of energy in the next years, with a focus on solar and wind power. The IPO is likely to go on the floor in FY 2022-23 or may extend further as per reports.