IPE, Hyderabad

16th March 2018, Hyderabad: The Institute of Public Enterprise (IPE), Hyderabad in its recently undertaken research on ‘Asset Pricing and Valuation of Central Public-Sector Enterprises (CPSEs) Quoted in Stock Markets in India’ concludes that the valuation of the CPSEs should be based on the fair price method which would average out the prices computed through earnings oriented and asset-oriented methods.

The study conducted by Dr. A Pawan Kumar points out that due care has to be taken regarding liquidity (number of trades) in the stock exchange to facilitate the realization of the fair price of the shares offered by the CPSEs going in for disinvestment. It may be noted that the Government of India proposes to list about 100 CPSEs in the stock markets including the offloading of shares of the Bharat Dynamics Limited and the Hindustan Aeronautics Limited.