Govt’s BPCL divestment plan takes off: These are key things to watch going ahead
The government’s mega divestment plan for the select PSUs including Bharat Petroleum Corporation Limited (BPCL) may increase free float in the market, encouraging the foreign portfolio investors to invest more in the capital markets, a rating agency said. In addition, this move is expected to create a wider investment space for retail and institutional investors and increase the market premium of PSUs, owing to likely positive investors perception, CARE Ratings said. The announcement is also expected to increase transparency and PSU contribution towards the higher economic growth, it added. However, there are a few key questions raised by CARE Ratings with regard to this divestment push:
