One of the country’s oldest public sector units — Andrew Yule and Company is planning to seek Central aid to help meet market regulator Sebi’s minimum public float norms. The Kolkata-based PSU is planning to seek about Rs 60 crore from the Centre to wipe off its accumulated losses.
“Though it has become profitable in the last few years but to comply with Sebi’s minimum public float norms, it needs a revival package to wipe off its accumulated losses,” two government officials familiar with the development told The Indian Express.
The department of heavy industries is understood to be finalising a proposal for the Cabinet Committee on Economic Affairs for a revival package for the public sector undertaking with interests in tea, electricals, engineering, lubricants, printing and digital communication. It has a public float of 6.7 per cent.
“All listed public sector firms have to comply with Sebi’s minimum public shareholding norms by August 2013. We want Andrew Yule to also increase its public float but with the accumulated losses, it will not be possible. So we are thinking of seeking equity infusion from the government,” a senior official from the department of heavy industries said, adding that a decision is likely over the next few months.
In 2010, market regulator Sebi had announced that all listed companies would have to meet a minimum public float criteria over the next three years. While listed private companies are expected to have a minimum float of 25 per cent by June 2013, PSU’s have to have a minimum listing of 10 per cent by August 2013. Andrew Yule was referred to the Board for Reconstruction of Public Sector Enterprises in 2006 and started making a profit in 2007-08. Though its net worth also turned positive in 2008-09, it has been unable to wipe off its accumulated losses till now.