New Delhi : To help push government’s recapitalisation drive for PSUs, regulator Sebi may grant a waiver to state-run entities in case public shareholding falls below 25 per cent and exempt them from open offer if they raise holding by more than 5 per cent in one financial year. The central government plans to allocate Rs 70,000 crore spread over four years towards recapitalisation of PSU banks to contain risks in the banking industry.
It has already infused Rs 22,915 crore capital in 13 lenders, including SBI and Indian Overseas Bank, to revive loan growth that has hit a two-decade low and help them shore up their capital base.
The infusion, part of the broader recapitalisation move, will increase in some cases shareholding of the promoter, that is government, beyond 75 per cent — the limit set by Sebi, reports PTI.
In other cases, promoter holding may go up by more than five per cent in one financial year, which would trigger an open offer. The likely waiver is aimed at providing the government an escape route from the mandatory requirements, sources said.
Sebi has exempted the government from making open offers to shareholders of several state-run firms following funds infusion that increased the government holding in the PSU entities.
The regulator had exempted several PSU banks such as Allahabad Bank, United Bank of India, Corporation Bank, Dena Bank and Bank of India, among others.
