PSUs to sell shares to staff at 5% discount

Employees of public sector undertakings (PSU’s) will now get their company’s shares at a discount of 5 per cent to the cut-off price of the company’s offer for sale (OFS). Securities and Exchange Board of India (Sebi) has given its nod to the Department of Disinvestment (DoD) to allow PSUs that come with their OFS to sell shares to their employees at a discount to last cut-off price of their OFS.

While a number of PSU’s are scheduled to come with their OFS to bring down the promoter’s (government’s) holding in the companies by August,the Department of Disinvestment had sought for approval of the market regulator Sebi to allot shares to the employees at a discount. The issue size to the employees will be 5 per cent of the size of the OFS.