The government’s stake in NSE companies has increased by 20.24 percent to Rs 16.99 lakh crore in the June quarter. In March 2022, this figure was Rs 14.13 lakh crore.
Government’s stake increased in listed companies
With the sale of its shares in Life Insurance Corporation of India, the government’s stake in NSE listed companies rose to 7.15 per cent in the first quarter of the current financial year. It was 5.48 percent in the last quarter of the last financial year. LIC Due to the sale of its stake in the government, the value of the companies listed on the NSE has increased. The government’s share in the listed companies in the market is continuously decreasing due to the sale of shares in the companies listed by the government. Although many companies of the government are not listed, but there are plans to launch them in the market. In such a situation, it is estimated that in the next few years, it is possible to once again increase the government stake in these listed companies.
Government’s share less than RIL’s total market cap
According to an analysis by Prime Database, the government’s stake in NSE companies in terms of value increased by 20.24 per cent to Rs 16.99 lakh crore in the June quarter. This figure was Rs 14.13 lakh crore in March 2022. This, however, is less than the value of Reliance Industries, which has a market capitalization of Rs 17.63 lakh crore. According to Pranav Haldia, managing director of Prime Database Group, the government’s market capitalization has increased due to the sale of its 3.5 per cent stake in LIC for Rs 20,557 crore in May.
Government’s share is decreasing since last 13 years
Significantly, since the last 13 years i.e. June 2009, the stake in the listed companies of the government has been decreasing continuously. In 2009, the government’s stake in listed companies was 22.48 percent. In June 2022, it came down to 7.15 percent. This has happened because of disinvestment. On the other hand, private promoters’ stake in listed companies declined to 44.33 per cent in the June quarter from 45.12 per cent in the previous March quarter.