RESEARCH HEAD M.R.LALITHA INVESTING ON DIS“INVESTMENT” 11/01/2010 Research Analysts Monika Bhandari Dinesh Kumar Under the disinvestment policy, 50 unlisted companies with a positive networth and profit for three years, and 18 listed companies that have less than 10% floating equity, would tap the market. With an ambitious government-backed line-up, the stock market could see 17-18 such issues in next fiscal year and an equal number the following year. The government action plan for PSU disinvestment, which is expected to be in place by March, would aim for no more than a three-week gap between two PSU issues. NTPC Ltd, National Mineral Development Corporation (NMDC), Satluj Jal Vidyut Nigam Ltd (SJVNL) and Rural Electrification Corporation (REC) would be going to the market before March 31, 2010. Steel Authority of India, MMTC Ltd, Coal India and BSNL are the next to see the dilution of government stake by 10% in 2010-11. The table below shows the details: ABML’s recent recommendations under this theme Category Intraday Short Term Investment Strategy Investment Strategy scrip Reco date REC Ltd 11-Jan-10 NTPC 8-Jan-10 Neyveli Lignite 2-Dec-09 Dredging Corp 11-Jan-10 Target 252.0 241.5 170.0 650.0 Equity Companies dilution(%) NTPC REC NMDC 5 5 8.38 Fresh equity(%) 15 - Money to be raised (Rs.crore) 8,100.00 4,400.00 14,000.00 SJVNL 10 - 1,200.00 Date Feb 3rd 2010 Feb 19th 2010 Mar 10th 2010 Last week of Mar 2010 Companies with the Government holding of more than 90% Company Name St Bk of Mysore Hind.Copper MMTC Mah. Elektrosm. HMT NMDC FACT Natl.Fertilizer Scooters India Andrew Yule & Co Neyveli Lignite ITI RCF STC Engineers India Sector Govt Holding (%) LTP(Rs.) Banks 92.33 717.35 Non Ferrous Metals 99.59 367.00 Trading 99.33 35278.00 Mining & Mineral products 99.12 540.00 Automobile 98.88 71.35 Mining & Mineral products 98.38 419.55 Fertilizers 98.11 40.45 Fertilizers 97.64 67.65 Automobile 95.38 30.20 Diversified 94.42 64.60 Power Generation & Distribution 93.56 163.80 Telecomm Equipment & Infra Services 92.98 48.70 Fertilizers 92.50 84.60 Trading 91.02 407.70 Capital Goods-Non Electrical Equipment 90.40 1545.15 Companies with the Government holding between 80-90% Company Name NTPC MRPL Natl. Aluminium NHPC Ltd Power Grid Corpn SAIL Madras Fert. SCI Power Fin.Corpn. Rural Elec.Corp. Central Bank Indian Bank Guj. State Fin. Sector Power Generation & Distribution Refineries Non Ferrous Metals Power Generation & Distribution Power Generation & Distribution Steel Fertilizers Shipping Finance Finance Banks Banks Finance Govt Holding (%) LTP(Rs.) 89.50 231.10 88.57 83.80 87.15 471.40 86.36 35.35 86.36 115.35 85.82 238.85 85.27 11.90 80.12 161.80 89.78 265.30 81.82 240.45 80.21 159.15 80.00 175.20 83.95 7.38 Disclaimer The information contained in this report has been obtained from sources believed to be reliable. While utmost care has been taken to create this report, the author or the organization does not take any responsibility for the consequences of this report. Investors who invest on the basis of recommendations mentioned in this report do so at their own risk.