press trust of india
NEW DELHI, 19 JUNE: PSU employees will now get an option to subscribe up to five per cent of the issue size at a discount after the completion of disinvestment in the concerned state-owned company.
Seeking to encourage employee participation in the PSU disinvestment through offer for sale (OFS), the DoD had sought approval of market regulator Sebi for allotting shares to employees at a discount of five per cent to the last cut-off price. “Sebi has concurred with disinvestment department’s scheme of Employee OFS. We will be selling shares to interested employees at a five per cent discount over the last cut-off price in that OFS,” a senior government official said.
The employees of such companies in which OFS was undertaken after December would be given the option to buy shares, with five per cent of the issue size to be offered to them.
To start with, the Department of Disinvestment (DoD) will offer shares to employees in Nalco, Oil India, Rashtriya Chemical and Fertilisers and this would be followed up with SAIL, MMTC and all subsequent disinvestments.
“The employee will have to bid for a minimum of 10 shares up to a maximum value of Rs 2 lakh,” the official said, adding that they should have a demat account.