Punjab Communications dismal divestment bid, at the very onset, has pressured others like Punjab Alkalis and Punjab Tractors down on Monday.

In fact, Punjab Alkalies (down 9.62% to Rs 9.40) and Punjab Tractors (down 2.49% to Rs 135.10), both detracted. Punjab Communications, itself, slumped 14.68% to Rs 52.90.

On Thursday, the Cabinet Committee on Disinvestment rejected the sole bid offered (by Shyam Telecom) for Punjab Communications on the ground that it was much lower than the government's expected reserve price. The unavailability of a fair price for Punjab Communications should set the state government rethinking on divestment in other state-run companies as well.

Other probable obstacles have been posed by prospects of imminent war in West Asia. Players, in any case, are offloading positions in Punjab state-run companies, as divestment prospects recede.

Earlier, the Punjab state government had called for bids to privatise all three companies. It holds 44% stake in Punjab Alkalies and Chemicals, 70% stake in Punjab Communication and 24% stake in Punjab Tractors.

Last week, the five companies comprising the Punjab state government group lost Rs 74.93 crore or 6.79% in market capitalisation to Rs 1,028.94 crore (Rs 10.28 billion) from Rs 1,103.87 crore (Rs 11.03 billion).

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