The Cabinet today approved the buyback of shares in PSU companies, but further details would be finalised by the boards of individual public sector entities
Mumbai: Shares of various public sector companies today gained ground after the government approved buyback of shares by certain PSUs as part of the divestment programme, reports PTI.
The Cabinet today approved the buyback of shares in PSU companies, but further details would be finalised by the boards of individual public sector entities.
While the names of potential buyback candidates could not be immediately ascertained, shares of companies like MMTC, Coal India, NMDC, Shipping Corporation surged higher.
MTNL, HMT, STC, Hindustan Copper, Engineers India, MOIL, Power Finance, Oil India and NHPC were also trading higher.
While MTNL was the biggest gainer in the PSU pack with a gain of over 6% on the BSE, HMT gained 5.9%, STC by about 5% and National Fertilizers by over 4%.
Hindustan Copper, NMDC, EIL and Shipping Corporation were up more than 3%, while MMTC and Neyveli Lignite were up about 2.9% each.
Nalco, Bank of Baroda, PFC, Chennai Petro, NHPC, Oil India, BEML, Coal India and Syndicate Bank were trading with gains of over 1% at 1150 hours in a weak market.
“Securities of UTV Software Communications and Carol Info Services will be suspended for trading on the NSE with effect from 9 March 2012 and 12 March 2012, respectively, on account of voluntary delisting pursuant to SEBI (Delisting of Equity Shares) Regulations, 2009,” according to a circular by the exchange
Mumbai: Shares of media and entertainment firm UTV Software Communications will stop trading on the National Stock Exchange (NSE) from 9th March, pursuant to a voluntary delisting by the company, reports PTI.
Besides, Carol Info Service, which provides contract manufacturing service for nutraceutical and milk-based products, would also be suspended for trading on the bourse from 12th March.
“Securities of UTV Software Communications and Carol Info Services will be suspended for trading on the National Stock Exchange with effect from 9 March 2012 and 12 March 2012 respectively on account of voluntary delisting pursuant to SEBI (Delisting of Equity Shares) Regulations, 2009,” according to a circular by the National Stock Exchange.
Both the companies had begun their respective delisting processes last month.
Walt Disney had offered Rs835.03-Rs1,000 a share for UTV Software shares, while the Khorakiwala Group had launched delisting offer for shares of the group firm Carol Info Services for Rs106 a piece.
UTV Software Communications and Carol Info Services would be excluded from S&P CNX 500 Index, while Indiabulls Real Estate and L&T Finance Holdings respectively would be included in the index.
At the end of the 10 months ending January, the fiscal deficit was Rs4,34,933 crore or 105.4% of the target, the Controller General of Accounts (CGA) said on Wednesday. The government had pegged the fiscal deficit for 2011-12 at 4.6% of the GDP or Rs412,817 crore
New Delhi: The government’s fiscal deficit target for the current year has been breached in January and with the numbers for two months still to come, the gap between expenditure and revenue may widen further, reports PTI.
At the end of the 10 months ending January, the fiscal deficit was Rs4,34,933 crore or 105.4% of the target, the Controller General of Accounts (CGA) said on Wednesday.
The government had pegged the fiscal deficit for 2011-12 at 4.6% of the gross domestic product (GDP) or Rs412,817 crore.
“It is known the fiscal deficit will exceed the target, not a surprise at all. Rather it could increase by one percentage point of the target, which is not a good sign at all,” said Govinda Rao, member of the Prime Minister’s Economic Advisory Council.
The fiscal deficit was 58.3% of the budget estimates at the end of ten months during 2010-11.
The rise in fiscal deficit is mainly on account of high subsidy bill, increasing crude oil prices, low tax collection and poor realisation from sale of government equity in state-owned companies.
However, the likely Rs12,500 crore earning from Thursday’s stake sale in oil-major ONGC could bring some relief for the government.
Besides, the lower economic growth could further deteriorate the fiscal situation as deficit is measured as a percentage of GDP.
The economic growth during the current fiscal is expected to be 6.9% as against the original estimate of about 9%.
Finance minister Pranab Mukherjee in his budget for 2012-13 to be presented on 16th March is expected to announce steps to contain the fiscal deficit.
As per the CGA data, tax collection during April-January 2011-12 was Rs458,567 crore or 69.5% of the Budget Estimates (BE). The mop-up during the same period last fiscal was 92% of the BE.
Similarly, the non-tax revenue collection totalled only Rs90,566 crore or 72.2% of BE. It was 136.6% of BE last fiscal.
Against the total income of Rs567,101 crore during April-January, the government’s expenditure was Rs10,02,034 crore.
As per the CGA data, revenue deficit during the period was Rs3,34,383 crore or 108% of BE. During the same period last year, the revenue deficit was 56.3%.