New Delhi: If the market regulator Securities and Exchange Board of India (SEBI) norms are followed, reducing promoter’s stake 121 companies in next 21 month will be venturing into capital market. According to estimation, issues worth Rs 35,000 crore will come into the market.

 According to minimum public shareholding norms of the SEBI, all private listed companies should have public shareholding of 25 percent, and listed public sector undertakings, or PSUs, of 10 percent. But still 11 PSUs and 110 private listed companies are yet to follow the norms.

The list comprises names of big companies. MMTC, National Fertilizer, Neyveli Lignite and IEC from PSUs and Wipro, DLF, Reliance Power and Godrej Properties from private sector are in the list. According to the SEBI’s norms, these companies have a deadline of June 4, 2013 to reduce their equity holdings.
According to the research report of MMC Global Securities, the value of equity stake sales into the market of 11 PSUs will be around Rs 10,980 crore. On the other hand, the value of equity stake sales of private companies will be around Rs 24,250 crore. These companies may sell their equity holding by following the route of public issue or auction.

These 11 PSUs will also help the government’s disinvestment target. The Finance Minister has set a disinvestment target of Rs 30,000 for next FY. The government holds 99.59 percent stake in Hindustan Copper, 98.88 percent stake in HMT and 97.64 percent stake in National Fertilizer. Promoters hold 79.15 percent stake in Wipro, 78.60 percent stake in DLF, 80.42 percent stake in Reliance Power and 80 percent stake in Jet Airways.