Like his ‘illustrious predecessor’ P Chidambaram, Union Finance Minister Arun Jaitley is out to milch public sector cash cows to bridge FY17’s budgetary deficit. In an overt instruction sent out to PSEs whose shares were slated for divestment and could not be divested because of the recent slide in the stock makret, they have been instructed to buy back their shares from the government.
Indianmandarins has learnt that boards of Coal Indian and Nalco will meet shortly and take a favorable decision. This will be followed by other PSEs.
Coal India is likely to buy back shares worth at least Rs 25 billion ($368 million) from the government, while Nalco may buy back 25 percent of its shares from the government worth Rs 32.5 billion rupees ($478 million).
Written by: Rakesh Ranjan (editor-in-chief)