Two out of three ain't bad," sang meatloaf once, setting a feel-good ratio that the Indian Disinvestment Ministry seems to be applying to the government's nine once-so-called Navratnas-literally, 'nine gems'. Six big public sector units (PSUs) are offering their shares for sale-though just two are actually Navratnas (four are mini-ratnas). The list: IPCL, ONGC, CMC, Dredging Corporation of India, IBP and GAIL, of which CMC and IPCL have already been privatised. But what unites them all is their 'ratna' honour (in memory of the title given by India's most successful Mughal to his most scintillating aides).

All six are listed on the bourses, but offer for sale of shares will probably be at 10-15 per cent discounts to current market prices. As investor-trader Rakesh Jhunjhunwala says, "The current valuations may not be extreme, but they are not cheap either." Nobody can predict whether the prices will go up or down soon after the issues. So invest only if you have an investment horizon of a year or so.

A longer term horizon would involve a risk, at least for some of these PSUs, on account of declining monopoly power, as Ashok Kumar, CEO, Lotus Strategic Consultants, warns.

CMC

This end-to-end it solutions provider is 51 per cent Tata-owned, post 2001. Once focused on government work, it is now leveraging its domain expertise and TCS' brand appeal to go global. Domestic growth looks good too. The public offer is of the government's 26.25 per cent residual holding.

Dredging Corp of India

With 80 million cubic metres of capacity, it has an 89 per cent share of the 65 million cubic metre port dredging market in India-thanks to favourable government guidelines. It will soon have to face global rivalry. The equity offer will take the government's holding down only from 98.5 to 78.56 per cent.

GAIL

This company transports 63 million standard cubic metres per day (mmscmd) of natural gas, and has a pipeline network of 4,600 km. It also operates seven plants for LPG (capacity: over 1 million metric tonnes per annum) and a petrochem one for high-density polyethylene. Entry barriers are high, but deregulation of gas prices could hit it. After offloading 10 per cent equity, the government will still have 57.35 per cent control.

IBP

Promoted by IOC, which holds 53.6 per cent of it (the government holds 26 per cent), this is a petrol retailer doing annual volumes of 3.8 million tonnes (3.6 per cent of the domestic market)-with its 2,526 outlets. Competition is likely to stiffen, with Reliance, ONGC, Essar and others entering the field. The public holding will only rise to 46 per cent after the issue.

IPCL

Having acquired a 46-per cent stake in this integrated petrochem player in 2002, Reliance has snapped the company into shape. It makes polymers, fibres and fibres intermediates and chemicals, and according to U.R. Bhat, Director, J.P. Morgan, "...is poised to benefit from the forthcoming petrochemical upcycle."

ONGC

The country's largest player in upstream oil and gas, this 84 per cent government-owned company is betting big on oil exploration. Says Dimant Shah, analyst, ASK Raymond James, "ONGC is reportedly sitting on significantly large oil discoveries." Also positive: its forward integration into petrol refining and distribution. After a 10-per cent equity offer, its public holding will rise to 13.88 per cent. A government 'gem' it would still be. But then, even a generous king would want to keep some of his shining story to himself.