The Hindu Business Line : Retail investors may get discounts on some sell-offs, says Shourie

THE Government is set to adopt differential pricing in some of the six companies where it is selling residual and minority stakes through a public offer with a view to rewarding the retail investors by offering discounts.

The Government's plan to offer discounts to retail investors in the forthcoming public issues in six companies starting with the public float of IPCL on February 20 was indicated by the Disinvestment Minister, Mr Arun Shourie, here on Tuesday.

``The Government has always, as in case of Maruti public issue, wanted to reward small investors. But to what extend the discount should be given and whether there should be a lock-in period all that will form part of our proposal to the Finance Minister,'' Mr Shourie said.

But, differential pricing may not be adopted in all the six forthcoming public offers.

``Each of these companies are so different that we will have to do different things. Do not hold me to a particular standard. We will have to craft the things in different ways,'' he noted.

``The price band will be announced on the evening of February 19. As in case of Maruti, we do it at that time. I will report to the Finance Minister to get his concurrence and guidance and then we will announce. We will do it after market closes,'' he said.

The Minister also said that the GAIL (India) offering would take place only in the domestic market. ``Due to time constraints and because the figures for disinvestment have already been included by the Finance Minister in his vote on account estimates for the Budget deficit, it was decided that it will all be done in the Indian market only,'' he said. "This is the first flush, so let us reward the Indian investor,'' he observed.

The schedule for the six public offers had been finalised, and rescheduling had been done in the case of ONGC and GAIL (India) public offerings to ensure a good response, he pointed out.

The public offer for sale of 10 per cent Government equity in GAIL (India) will open on February 27, followed by the sale of 10 per cent equity in ONGC on March 5.

CMC Ltd public offer will hit the market on February 23 while that in IBP & Co Ltd and Dredging Corporation would be launched simultaneously on February 26.

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Retail investors may get discounts on some sell-offs, says Shourie