AI sale: PSUs set for rerating, divestment agenda gets a push, say analysts

Analysts have given a thumbs-up to the takeover of Air India by Tata Sons and suggest that the diversified conglomerate has acquired the struggling state-owned entity at an attractive price. The deal, they say, is a win-win for both – the government and Tata Sons – and can help fast track the rest of the divestments lined up in fiscal 2021-22 (FY22). That apart, it will help re-rate stocks of most public sector enterprises (PSE) at the bourses.

“The Air India deal going through is in itself is a big development can will trigger a rerating of PSEs, especially Bharat Petroleum Corporation Limited (BPCL), Container Corporation (CONCOR), Shipping Corporation, SAIL, Hindustan Copper etc., where government the has already shown its intent of divesting its stake.