Tuesday, January 27, 2015

Stake sale in IOC, BHEL and NALCO: Govt seeks merchant bankers' assistance

Finance Minister Arun Jaitley 
THE Government has sought merchant bankers to help it in disinvestment of three PSU majors: IOC, BHEL and NALCO. The Centre aims a disinvestment target of Rs 43,425 crore for this fiscal, says a media report.
The stake sale in these companies would fetch about Rs 13,000 crore to the exchequer.
Centre wants to sell its...
10 percent stake each in Indian Oil Corporation (IOC) and National Aluminium Company Limited (NALCO), while it will put on block its 5 per equity shares in Bharat Heavy Electrical Ltd (BHEL).
IOC, a Maharatna public sector undertaking under the administrative control of ministry of petroleum & anatural gas, is likely to fetch Rs 8,100 crore to the government at the current market price.
Disinvestment of government stake in BHEL would be worth about Rs 3,500 crore, while NALCO is likely to fetch about Rs 1,230 crore.
Government stake in IOC is 68.57 percent, 63.06 in BHEL and 80.93 percent in NALCO.
In IOC, government would be selling 24.27 crore shares and 25.77 crore in aluminium major NALCO, while it plans to sell 12.23 crore shares in power equipment major BHEL through offer for sale (OFS) route.
Employees of the three PSUs would get five percent discount for buying shares in IOC, BHEL and NALCO.
Last week, the department of disinvestment floated public notice seeking expression of interest from reputed merchant bankers for divesting 10 per cent stake in iron ore miner NMDC that could fetch about Rs 5,500 crore to the exchequer.
Recently, finance minister Arun Jaitley had said that major disinvestment would pick up in coming month.
"I am not going to give any indication but major disinvestment in the coming months prior to March 31 is going to take place," the minister said.
In 2014-15, the government has sold five percent stake in steel major SAIL and raked in Rs 1,700 crore. It is racing against time to meet its disinvestment target of Rs 43,425 crore for this fiscal. Blue-chip companies like ONGC, NHPC and Coal India has been lined up for disinvestment.
In addition, it is also targeting Rs 15,000 crore from sale of residual stakes in private companies in this fiscal.

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