Mumbai: India’s finance minister has approved a plan that requires listed companies to have at least 25% public float, including state firms, the Economic Times reported on Friday.
The rule is likely to come into force from the next fiscal year that begins in April, after the plan is approved by the law ministry, the newspaper said, citing an unnamed government official with knowledge of the proposal.
Under the plan, companies in which founders or others who own more than three quarters will have to increase the public float by 5% annually until it reaches 25%, the paper said.
There are 174 firms, including 28 state-run companies, that would need to offload stakes valued at Rs1.33 trillion ($27.3 billion), a study by SMC Capitals showed.
Some of the government companies are: Steel Authority of India, MMTC, NMDC Ltd and State Bank of Mysore, it said.
Private sector firms include Wipro, Jet Airways, Puravankara Projects and Novartis India Ltd, the paper said.