Delhi, Sept 29
The Cabinet Committee on Economic Affairs chaired by the Hon’ble Prime Minister Narendra Modi has given approval for listing of M/s. Export Credit Guarantee Corporation Ltd. (ECGC), an unlisted CPSE through the Initial Public Offer (IPO) on the Stock Exchange under the SEBI’s (Issue of Capital and Disclosure Requirements) Regulations, 2018.
ECGC Limited is a wholly-owned CPSE of Government of India set up with the objective of improving the competitiveness of the exports by providing Credit Risk Insurance and related services for exports. The Company intends to increase its maximum liabilities (ML) to Rs 2.03 lakh crore from Rs 1.00 lakh crore by 2025-26.
The proposed listing of ECGC Limited would unlock the true value of the company, promote ‘people’s ownership’ by encouraging public participation in the equity holding of the company and also promote Corporate Governance through transparency and greater accountability.
Listing may enable ECGC to mobilize fresh capital from the market either through the same IPO or subsequently through a Follow-on Public Offer (FPO) and thereby help in increasing the Maximum Liability cover for it.
The disinvestment proceeds will be used for financing of social sector schemes.