Vous êtes sur la page 1sur 1

The art of disinvestment

Is recession over? Now a days majority think likewise. Atleast they believe that the worst is over. The father of
recession which the world witnessed in 1929-33 lasted 4 years, but the so called recession in the 21 st century
lasted only less than 2 years. So can we say that was it recession. Economists debate on this matter, let they.
But the problems still persist. Have you got back your lost job, can you expect a salary increment now all this
questions can be answered only in a negative way. So recession still lasts so far your life and career is
concerned.
We can come back to India. India was not completely affected by recession, it only witnessed a slow down. We
thought that it was recession. India the 12th biggest economy in the world had again reworked it's growth
expectations and now dreaming big in this regard. With a fiscal deficit of 6.8 percent the country assumes to
grow at a pace of 6.5 percent in the next financial year. The confidence is back.

IPO market shows some strength


The main revival witnessed post budget is in the initial public offering market. Which was very dull in recent
times. The hit IPO was that of Adani power. The Gautam Adani promoted company's subscription was roughly 22
times. It shows that the investor confidence is back in stocks. The next IPO was that of NHPC, the public sector
hydro electric power company is planning to disinvest 10 percent of it's stake it is expected that the attractive
price range (30-36) would attract more investors. Altogether there is green signal for the stock market.

The art of disinvestment


It is calculated that the total market value of PSU companies are 25lakhs crore. If only 10 percent disinvestment
happens about 2.5 lakhs crore will be released. The fiscal deficit problem will be addressed through it.
Disinvestment not simply means privatization it means dissolving some percent of shares and allowing it to trade
through exchanges. When UPA second came in to power there was great discussion about disinvestment. Newly
appointed finance minister Pranab Mukheerjee kept mum about the policy of disinvestment in his budget speech.
(indices tanked on that day just because of the silence). But from the very net day government started plans to
disinvest. They consider to dissolve the government stakes upto 10 percent. In listed companies stake will be
sold until it reaches 10 percentage, in unlisted PSUs stake upto 10 percentage will be sold. It is believed that
government can raise upto 5lakh crore in maximum through disinvestment.

Disinvestment good or bad


Nothing is good or bad, it's only our perception. Ofcourse blind privatisation will do no good to the economy as
well (this is well understood during recession) but there are areas where privatization needs badly. When we
take the case of PSUs government can't always fund them, there are other sectors also which need funding.
Disinvestment is the only key to sustain in tough competition. But what will happen to theemployees them, will
they be hived off?. Trade unions protest against disinvestment saying that they will lose their job. There is less
fact in it. ESOP is one instrument which helps the employees to tap the benefit from their companies stocks.
Then there will be prefrential allotment of shares also. Disinvestment is necessary in order to compete with the
private players. If we close all windows we will not be able to grow.
Instead of protesting against disinvestment employees should fight for accountability and transparency in the
system. They have to adapt the changes and fight for their rights, when a company progresses it's employees
also progresses. When a nation progresses the people's living standard also increases.

Pramod Thomas

Vous aimerez peut-être aussi