SEBI’s minimum public shareholding (MPS) guidelines specify the minimum float that listed businesses must maintain. Presently, the rules suggest that promoters should own no more than 75 percent of a listed company’s stock, with the rest available to the public.
SEBI introduced the Offer for Sale (OFS) on February 1, 2012, to allow promoters in order to achieve the minimum public shareholding (MPS) in listed companies while also providing a transparent framework for promoters of the top 100 listed companies based on market cap to sell their shares using OFS.
The following are nine stocks that currently have more than 75% government holdings and are expected to bring OFS.
Madras Fertilizers Ltd.
Incorporated in 1966, Madras Fertilizers Ltd. (MFL) is engaged in the manufacture of ammonia, urea, complex fertilizers and biofertilizers.
With a market cap of Rs. 1,742.31 crore, as of December 2023, the Promoters hold 85.27 percent of shares in MFL. The company was incorporated as a joint venture between the government of India and AMOCO India in accordance with the Fertilizer Formation Agreement.
The share price of MFL moved up by 2.2 percent to Rs. 109.60 in the morning trading session of February 7th, compared to its previous closing price of Rs. 107.20.
The company has delivered nearly 38.90 percent returns in the last six months, whereas it has given more than 82.0 percent in the last one year. So far, it has given negative returns of around 6.51 percent in 2024.
Fertilisers And Chemicals Travancore Ltd.
With a market cap of Rs. 51,733.4 crore, the Promoters’ holding of Fertilisers And Chemicals Travancore Ltd. (FACT) remains unchanged at 90 percent, as of December 2023.
FACT was incorporated in 1943 as the first large-scale fertilizer plant in India at Udyogamandal, Kerala, and started production in 1947. The company is engaged in the manufacture and marketing of fertilisers and petrochemicals, engineering consultancy, and design, fabrication and erection of industrial equipment.
The share price of FACT moved up by 1.35 percent at Rs. 817.80 in the morning trading session of February 7th, compared to its previous close was Rs. 806.90.
The company has delivered nearly 69.5 percent returns in the last six months, versus over 201.8 percent in the last one year. So far, it has given negative returns of around 2.68 percent in 2024.
ITI Limited
A public sector undertaking in the telecommunication technology segment, ITI Ltd. was established as a departmental factory in 1948 and is engaged in manufacturing, trading and servicing of telecommunication equipment, and rendering other associated and ancillary services.
The Promoters hold 90.28 percent of the equity shares in the company, as of December 2023 and the share price of ITI Ltd. fell by 1.09 percent to Rs. 349.80 on February 5th.
With a market cap of Rs. 33,592.6 crore, the company has delivered nearly 191.7 percent returns in the last six months, whereas it has given more than 249.0 percent in the last one year. So far, it has given positive returns of around 13.82 percent in 2024.
NLC India
As of December 2023, the Promoters’ holdings remain unchanged at 79.20 percent, whereas, the FIIs hold 1.21 percent of the shares, and DIIs hold 8.85 percent of the shares in the company, aggregating to 10.06 percent of the institutional holdings.
With a market cap of Rs. 36,676.53 crore, the share price of NLC India fell by 6.68 percent to Rs. 264.70 on February 7th, compared to its previous close of Rs. 283.35. The stock hit a new 52-week high at Rs. 293.75 on February 5th.
The company has delivered nearly 120.1 percent returns in the last six months, whereas it has given over 254.0 percent in the last one year. So far, it has given positive returns of around 5.68 percent in 2024.
NLC India was incorporated in 1956 and is a Navratne Government of India enterprise under the administrative control of the Ministry of Coal. the company is engaged in the business of mining lignite and renewable energy sources.
Indian Railway Finance Corporation Ltd.
Established in 1986, Indian Railway Finance Corporation (IRFC) is the financing arm of the Indian Railways for mobilising funds from domestic and overseas capital markets.
With a market cap of Rs. 2.1 lakh crore, the Promoters’ holding remains unchanged at 86.36 percent, as of December 2023. The share price of IRFC moved up by 3.1 percent to Rs. 165.90 in the morning trading session of February 7th, compared to its previous closing price of Rs. 160.90.
The company is also registered as a Systemically Important Non–Deposit taking Non-Banking Financial Company (NBFC – ND-SI) and Infrastructure Finance Company (NBFC- IFC) with the RBI.
The company has delivered nearly 222.91 percent returns in the last six months, whereas it has given more than 437.0 percent in the last one year. So far, it has given negative returns of around 56.91 percent in 2024.
Housing & Urban Development Corporation Ltd.
As of December 2023, the Promoters’ holding reduced by 8.11 percent from 81.81 in Q2 FY23-24 to 75.17 percent in Q3 FY23-24. The share price of HUDCO moved down by nearly 1.66 percent to Rs. 198.30 on Wednesday, while its previous closing price was Rs. 201.65.
With a market cap of Rs. 39,697.6 crore, HUDCO is a housing finance company under the Ministry of Housing and Urban Affairs (MoHUA) and is engaged in the business of financing Housing and Urban development activities in India.
The company has given over 207.0 percent returns in the last six months and nearly 330.28 percent in the last one year, whereas, so far in 2024, it has delivered returns of around 52.9 percent.
SJVN Ltd.
Established in 1988 as a joint venture of the Government of India and the Government of Himachal Pradesh, SJVN Limited is under the control of the Ministry of Power and is a public sector undertaking (PSU).
With a market cap of Rs. 57,414.3 crore, the Promoters’ holding of SJVN Ltd., a Mini Ratna Category-I under the control of the Ministry of Power, is 81.85 percent, as of December 2023.
The share price of the company moved up by 7.1 percent in the morning trading session of Wednesday to Rs. 157.40, compared to its previous close of Rs. 146.95, and the stock hit a new 52-week high at Rs. 170.5 on February 5th.
The company has delivered nearly 158.0 percent returns in the last six months, whereas it has given more than 353.0 percent in the last one year. So far, it has given positive returns of around 57.80 percent in 2024.
The company is engaged in the business of electricity generation as well as in the business of providing consultancy for hydropower projects.
Bank of Maharashtra
With a market cap of Rs. 42,524 crore, the shares of Bank of Maharashtra hit a new 52-week high on February 7th at Rs. 65.65, up by 3.81 percent and opened at Rs. 62.35.
Bank of Maharashtra is engaged in providing banking services and was formally registered in 1935. As of December 2023, the Promoters hold 86.46 percent of the equity shares in Bank of Maharashtra.
The company has delivered nearly 88.48 percent returns in the last six months, whereas it has given more than 126.20 percent in the last one year. So far, it has given positive returns of around 39.4 percent in 2024.
Central Bank of India
As of December 2023, the Promoters’ holdings remain unchanged at 93.08 percent, whereas, the FIIs hold 0.07 percent of the shares, and DIIs hold 2.79 percent of the shares in the company, aggregating to 2.86 percent of the institutional holdings.
Established in 1911, the Central Bank of India is a commercial bank and was the first Indian commercial bank which was wholly owned and managed by Indian citizens.
With a market cap of Rs. 59,898.4 crore, the share price of the Central Bank of India hit a new 52-week high at Rs. 70.95 on February 7th.
The company has delivered nearly 130.27 percent returns in the last six months, whereas it has given over 154.80 percent in the last one year. So far, it has given positive returns of around 37.24 percent in 2024.
Written by Shivani Singh
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