http://timesofindia.indiatimes.com/India_Business/Railways_should_go_for_public_offer/articleshow/2856260.cms
Members may comment on suggestion of Hon'ble MP
Members may comment on suggestion of Hon'ble MP
Indian Railways and IPO
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 pankajp |
Indian Railways and IPO |
Lead | |
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Posts: 276 (03/11/08 20:38:14) |
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subbu98 |
Sheer nonsense. | ||
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Posts: 152 (03/13/08 01:21:12) |
We have this habit of jumping the gun, no? Somehow or the other an incredible precedent is always available for us either in China or else where. No offence
meant. But then if someone takes the suggestion in right earnest and decides to follow the procedures to go for the IPO, which would of course involve among
other things creating an entity out of Railways that is entitled to go for a IPO, there is a huge possibility that the same Honourable Member would do a volte
face to complain that the Government of the day has privatized or corporatized the Railways. A little learning is always a dangerous thing.
Subhashisha Nath. |
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pankajp |
DFCCIL and IPO | ||
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Posts: 277 (03/13/08 03:10:43) |
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irse |
IPO for railways & its PSU | ||
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Posts: 110 (03/13/08 18:03:48) |
Railways has already planned IPO for its psu http://economictimes.indiatimes.com/Market_News/Railways_to_raise_Rs_1500_cr_via_IPOs/articleshow/2863475.cms
If Railways go for IPO , its market captalisation will be very high, as on date ,its earning are quite comparable with any corporate house without matching management techniques .If it is managed professionally ,things may further improved |
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pkatre |
IPO | ||
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Posts: 120 (03/13/08 21:24:22) |
It's natural for the politicians to jump the guns, but to see railway officers enthused by such ideas is quite amusing. IR will have to be Corporatized before it can go for IPO, a prospect which many of us would dislike as that will take away our 'sarkari status' even though it keeps us in poverty. Moreover, for IPO IR will have to comply with disclosure norms and the Accounting Standards under the Companies Act and SEBI guidelines which will surely prune our surplus to more objective levels. Added to this, huge wage bills, pension liabilities and large chunks of unproductive assets would further reduce the offer price. However, given the good amount of publicity and positive image generated over the last few years, it would be beneficial to go in for interest bearing 'Railway Bonds' which are sure to be subscribed well, given the volatility in the stock markets. We may even tie up with Infrastructure MFs, or FIIs for investing in these bonds through IRFC. Getting the Finance Ministry to waive IT or include such investments in Sec 80C, would further sweeten the offer.
Parag. |
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pankajp |
IPO of DFCCIL | ||
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Posts: 278 (03/13/08 23:13:37) |
DFCCIL can certainly opt for IPO route, separate from IR, only after completing other requirements as per Company Act.
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subbu98 |
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Posts: 153 (03/14/08 00:27:32) |
DFCCIL's IPO is DFCCIL's IPO. It would have nothing to do with the Railways. Notwithstanding the fact that Ministry of Railways may be the
Administrative Ministry. Please mark the term Administrative Ministry. DoT does not go to town blowing the trumpet for the market capitalization of BSNL or
MTNL. And bingo Parag. For bringing out the nuanses.
Subhashisha Nath. |
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pankajp |
some more news on DFC | ||
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Posts: 279 (03/14/08 06:03:19) |
http://www.thestatesman.net/page.news.php?clid=2&theme=&usrsess=1&id=194978
May be IPO will help in this scenario |
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irse |
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Posts: 111 (03/14/08 08:31:13) |
As all of us know ,there is vast difference between Bond & equity (IPO) .one can sell equity of face value Rs 10 at a huge premium( let us presume premium
of Rs 20) to be decided by market condition .Then for at least next 10 yr,deptt can pay 20% dividend without any extra cost to organisation as this dividend
will go from premium only
For Bond , you have to pay intrest from day one irrespective of the fact that project may start giving return only after 10yr .Thus you will be paying intrest from principal amount only & physically less amount will be available for project Diluting a 10 to 20% equity will fetch handsome amount for a company which earn 25000 cr per year I am not finance expert ,therefore is not aware of procedure & difficulty in doing so.when railway has its own finance & own budget ,it can be corporatised also .After all ,all our corporation (PSU) are working well .In fact if we feel that it can not be done in railways ,we make PSU like DFC ,KRCL ,RCIL,IRCON etc |
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irse |
how railway loose money | ||
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Posts: 112 (03/14/08 22:31:05) |
I saw an article in mumbai mirror .Such thing will not happen if Indian railways is corporatised
Here is a very interesting article from today's, Mumbai Mirror. > > http://www.mumbaimirror.com/net/mmpaper.aspx? > page=article§id=5&contentid=200803142008031402033821699d499f4 > According to figures released by Railway ministry in reply to a > question in the Lok Sabha on Thursday, the railways are losing money > on AC I-Class, AC II-tier, I Class, Sleeper Class, II-Class > (mail/express) and II Class (ordinary). > > So much so that the loss on II-class (ordinary) passengers is almost > 50 per cent with the railways able to realise only Rs 17 after > spending Rs 32 on them. Sleeper Class comes second in making the > railways poor as the realisation per passenger in this category is Rs > respectively. I Class and AC II-tier register a loss of 8 per cent > (Rs 214 fare on Rs 233 cost) and 1 per cent (Rs 861 on Rs 873 cost) > per passenger, respectively.
Last Edited By: irse
03/14/08 22:33:07.
Edited 1 times.
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uandme72 |
Corporatisation of IR | ||
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Posts: 9 (03/25/08 07:54:00) |
The 6th Central Pay Commission has already recommended corporatisation of IR.
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