{"id":163609,"date":"2022-09-13T04:36:56","date_gmt":"2022-09-13T04:36:56","guid":{"rendered":"https:\/\/precoinnews.com\/?p=163609"},"modified":"2022-09-13T04:36:56","modified_gmt":"2022-09-13T04:36:56","slug":"defence-psus-to-hold-roadshows-in-dubai-abu-dhabi-to-woo-investors","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/defence-psus-to-hold-roadshows-in-dubai-abu-dhabi-to-woo-investors\/","title":{"rendered":"Defence PSUs to hold roadshows in Dubai, Abu Dhabi to woo investors"},"content":{"rendered":"
Defence public sector undertakings (PSUs) have been asked by the Centre to hold roadshows in Dubai and Abu Dhabi to share their financials and business plans to reel in investors.<\/p>\n
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Hindustan Aeronautics (HAL), Bharat Dynamics (BDL), Bharat Electronics (BEL), Garden Reach Shipbuilders & Engineers (GRSE), and Mishra Dhatu Nigam (MIDHANI) have informed stock exchanges that they will conduct investor outreach programmes and participate in ‘non-deal’ roadshows and meetings with prospective investors from September 12-15.<\/p>\n
They will share their short- and medium-term growth plans, financial metrics, improvement in their stock performance\/ market capitalisation — and make a pitch of sorts to prospective investors.<\/p>\n
Even as these roadshows are not related to any share offering by the Centre, they will set the stage for future stake sales by the government.<\/p>\n
Such roadshows may be a precursor to the government’s plan to come up with an offer for sale for such PSUs, observe sector experts.<\/p>\n
The roadshows are a step by the Centre to nudge PSUs to actively engage in a dialogue with market participants and apprise potential investors of their performance.<\/p>\n
The step also underscores the Centre’s efforts to place PSUs on a par with their private sector counterparts.<\/p>\n
The government has taken a series of steps to reinforce investor confidence in PSU shares that are undervalued compared to their private peers.<\/p>\n
The Department of Investment and Public Asset Management has inserted new parameters into the memorandum of understanding PSUs sign with the government — these include holding investor conference calls after declaring quarterly earnings and sharing the management’s future plans.<\/p>\n
The holding of analyst\/investor calls have shown results, with share prices reacting positively to management commentary.<\/p>\n
Other steps taken to improve governance include adhering to better capital management practices, opting for debt financing, whenever required, against utilising internal accruals for funding projects, among others.<\/p>\n
Defence PSUs have been outperforming non-defence PSUs, says Harshit Kapadia, vice-president at Elara Capital, and a defence sector expert.<\/p>\n
The government wants to put PSUs on the same footing as their private peers, adds Kapadia.<\/p>\n
Of the five PSUs holding roadshows, the mandatory minimum public shareholding norms is met by all, except for HAL.<\/p>\n
The government owns 75.15 per cent stake in HAL.<\/p>\n