IPOs of the public sector units could revive investor confidence, which has taken a beating in wake of the global financial crisis, Chief Financial Officer of Indian companies said in a survey.
Majority of the 300 chief financial officers (CFOs), who participated in the Assocham survey said they have confidence in the Indian public sector units (PSUs) equities.
"Retail and other investors have lost confidence in stocks for parking their surpluses and the only way out left is that the government encourage PSUs to float initial public offers (IPOs)," the chamber said.
Citing an example, the chamber said that way back in 2002, when the domestic corporate market was enduring depressed sentiments in the financial market, Maruti Suzuki came out with IPO and investors regained their confidence.
About 175 CFOs said that PSUs like National Hydro Power Corporation and Oil India Ltd have necessary approvals for IPOs but are stuck in their administrative Ministry on the issues of pricing.
"CFOs opined that it is the right time for the PSUs to come out with their IPOs as majority of investors are looking for safer investment channels having sovereign guarantee in one way or other," it said.
"The government and RBI have been consistently announcing decisions to revive market sentiments to uplift capital market but these have yet to yield the required objectives and therefore the government ought to motivate PSUs to float IPOs," Assocham President Sajjan Jindal said.
