Sebi's listing norms: 8 PSU stocks to gain most

Market regulator Sebi has laid down the Institutional Placement Programme (IPP) guidelines to allow companies to reduce promoter shareholding through private placement. This move is expected to aid government in its divestment process.

Further, Sebi has also removed the block deal option so that promoters can meet 75 percent threshold but Jagannadham Thununguntla, Head of Research at SMC Global feels this move won’t make a big difference.

“The auction window is more or less of a similar pattern like the block deal. What can be achieved through bulk deal block deal it can also be achieved through auction mode, " he told CNBC-TV18.

“Eight PSUs (including STC, MMTC , RCF and National Fertilizers ) in which the government holds more than 90 percent stake are likely to get impacted positively. However, he cautions that since these PSUs are not that large, the maximum the government can raise is only Rs 4,000-to Rs 5,000 crore,

In the private sector, stocks like DLF , Reliance Power, Godrej Properties , and Godrej Industries will be in action in the next one year to meet this norm, he added.

Thununguntla claims, given the current market condition, one will have to see if these companies are able to complete the procedure even through the IPP route.

Watch the full interview on CNBC TV 18