Divestment & dynamics of financial performance parameters: A comparative study of Indian public energy sector companies

The main objective of private and public ownership are `profit maximization’ and `welfare maximization’. Therefore, a change in ownership leads to have a significant impact on its behavior and performance of an enterprise. That's why the present study is proposed to analyze the impact of change in ownership on financial performance of NTPC Ltd. and NHPC Ltd. In the present study effects of divestment of the government shareholdings has been taken into consideration. For this purpose financial data from 2005 – 2006 to 2011 - 2012, related to pre and post divestment, has been considered. The researchers concluded that in case of NTPC Ltd., divestment has significant impact on leverage and Dividend Payout but has no significant impact on Profitability and Liquidity as well. Regarding NHPC Ltd. There is no significant effect on all four selected parameters.