About a dozen loss-making state-run firms including Hindustan Photo Films and Scooters India may be delisted from stock exchanges on absence of revival prospects and investor interest to meet the new listing norms.
“There is no or little trading in these scrips,’’ said a senior finance ministry official. ``Most of them are sick or have virtually closed their operations. They’ll not be able to generate any interest if put under the disinvestment process,”. The companies that may be delisted include India Tourism Development Corp., Brahmaputra Valley Fertiliser Corporation, Scooter India, Hindustan Photo Films, Maharashtra Elektrosmelt, Hindustan Flurocarbons, Kudremukh Iron Ore., HMT, ITI, and FACT. A new rule stipulates that at least 25% of the company should be held by public for it to remain listed on the stock exchanges. In some companies such as miners NMDC and Hindustan Copper, the government is selling a part of its holding and some news shares to comply with the rules. But many companies such as Hindustan Photo have failed to revive despite attempts by the government. The cabinet committee on economic affairs last month approved a Rs. 68 crore revival package for some including HMT, Hindustan Photo Films, Triveni Structurals, Tungbhadra Steel Products, Nepa, and Scooters India. But a clear turnaround for all appears remote. “Revival or closure of these companies is still to be worked out. Some of these companies have shown profit due to the revival packages. The interim financial support was provided so that the current operations should continue,” the ministry official said. The government so far has provided Rs 15,253 crore for 55 loss-making state-run companies. Their accumulated losses rose 40% in 2008-09 to Rs 14,424 crore, from Rs 10, 257 crore a year earlier. 54 of the 213 state-run companies posted losses. in 2008-09. “A stock exchange can delist a company if it has been making losses for three consecutive years or has a negative networth. Most of these companies fall in that bracket,” said the official. ``We also have to consider what kind of exit option can be given to existing shareholders.” -- Thanks & Regards, Abhishek Kothari -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
