Thursday, March 1, 2012

Disinvestment

Government tried to disinvest ONGC yesterday. But none of the big brokers showed interest in ONGC shares. Can you imagine? ONGC did not get response. Disinvestment of other PSUs will be more difficult. Of course certain companies like BHEL may fetch good response. Cannot deny that. But still the big brokers are not interested in PSUs in general. They do not have the drive because of lack of FII support.
Government has forced LIC to use its huge financial backup for saving its face.
Why doesn't the government take up a consultant and directly disinvest to public? There will be tremendous response.  Why cause embarassment to itself and LIC? The answer is who will bell the cat. The ball rolls in government from here to there like a hockey match heading towards a tie.

1 comment:

  1. The problem which I later read was premium per share required by government was higher. The banks advising government wanted the premium to be less. The government did not heed. And look what happened?

    ReplyDelete