Cabinet approves listing of ECGC Ltd. through the IPO on the stock Exchange
NEW DELHI : The Cabinet Committee on Economic Affairs chaired by the Hon’ble Prime Minister, Shri 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.
According to Union Commerce Minister Shri Piyush Goyal ,” interacted with media on cabinet decisions to boost exports , MSME sector will gain immensely from the decision to allow capital infusion into Export Credit Guarantee Corporation & National Export Insurance Account in the next 5 years.”
The Govt. led by PM Shri Narendra Modi has taken a series of steps to boost exports. India is presently in a sweet spot & is being recognised globally as a strong economy.#ExportsSeVikas will continue despite uncertainties in the global economy, said Mr. Piyush Goyal.
He also added that Government’s decision to allow capital infusion in Export Credit Guarantee Corporation & National Export Insurance Account will be a Gamechanger.
This will enable better insurance cover & finances to exporters & promote #ExportsSeVikas.
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.
