At least 48 private sector companies are likely to offload shares worth about $1.8 billion (Rs 9,900 crore) in the next five weeks to meet the minimum public holding of 25 per cent to comply with the Securities and Exchange Board of India (Sebi) guidelines by August.
According to the new norms for listed firms, all private sector companies have been asked to attain a minimum public holding of 25 per cent by June 2013 while public sector entities were asked in August 2010 to increase their public holding to, at least, 10 per cent by August 2013.
A Bank of America-Merrill Lynch report says there are about 48 companies that currently have a public holding of less than 25 per cent.
These include Adani Ports, Adani Enterprise, Omaxe, Bajaj Corp, Sun TV Network, Fortis Healthcare, Essar Ports and JSW Energy. The list also includes Tata Teleservices, Tata Communications, Berger Paints, Astrazeneca Pharma, Oberoi Realty and Thomas Cook.
Together, these companies would need to sell shares worth $1.8 billion to meet the new norms.
In addition, there are 12 PSU companies that have over 90 per cent government holdings. These companies are together required to offload shares worth $750 million.
“We estimate that there could be supply of $1.8 billion by June and $2.5 billion by August to comply with Sebi guidelines,” the report said.
Market experts, however, believe the stock market does not have the appetite to absorb share sales worth more than Rs 10,000 crore offered by these companies within five weeks.
With inputs from PTI