New Delhi: There could be a revolution in the way companies are listed on India’s stock markets. Government officials plan to change the norms for companies going public. Under the proposed rules, public shareholders will hold at least 25% of all listed companies. If the new rules get approved, they could trigger a spate of stake sales from government companies. They will also make it compulsory for companies listing for the first time to keep at least 25% of its shareholdings public.
The news keeps getting better for the IT industry. On Wednesday HCL Technologies announced its quarterly numbers. Net profits jumped 58% to Rs344 crore in the first three months of 2010. Revenue figures beat expectations, going up 7.5% to more than Rs3,076 crore. Some analysts say HCL’s numbers were helped by lower depreciation costs and a reduction in foreign exchanges losses.
The IMF has announced its forecast for India’s economic growth. Its World Economic Outlook predicts the Indian economy will expand 8.8% in the calendar year 2010. In 2009, it grew just 5.7%. The IMF says investments will get a boost from greater profitability and business confidence. It also says the labour market will strengthen this year, increasing consumption.