As per a leading financial daily, the Securities and Exchange Board of India (SEBI) has written to Finance Ministry proposing the minimum public shareholding (MPS) in public sector undertakings (PSUs) to be raised from 10% to 25 %. It is important to note here that 25% free float norm for private companies has already been successfully implemented. The rationale behind the same was to restrict stock price manipulation and to raise participation from investors. SEBI now wants the government to cut down its holdings in PSUs to below 75 %, to level the playing field. SEBI is likely to set a 3 year timeframe for PSUs to meet the requirement, to avoid crowding out. Currently, there are about 30 PSUs with government holdings of more than 75 %. At current market rates, this would imply offloading of around Rs 600 bn stake by the Government. As per the sources, the finance ministry would consult other ministries before accepting SEBI's proposal. As such, the final discussion on the matter may take some time.
Container Corporation of India Ltd., the market leader in container rail transportation has reported has announced results for the quarter ended March 2014. The net income from operations were up 5% year on year (YoY) during the quarter. Segmentwise, the income from 'Export-Import' segment registered a flattish growth, while the 'Domestic' segment grew by 26% YoY. The net profit for the quarter was up 9% YoY. For FY14, the growth in the revenues and net profit stood at 13.1% YoY and 5% YoY respectively. On a consolidated basis, the net profit for fiscal year (post minority interest) grew by 2% YoY. The board has recommended a final dividend of Rs.5.3 per equity share for FY14