Government Plans Rs 34,500-Crore Stake Sales In Indian Oil, 6 Other PSUs
The Department of Investment and Public Asset Management has sought bids from merchant bankers and legal advisors to manage the sale of shares in firms including Indian Oil Corp Ltd, NTPC Ltd and Steel Authority of India Ltd (SAIL), according to bidding documents on its website.
The government will sell the stakes through the offer-for-sale route, meaning by auction on stock exchanges.
The sales could fetch the government Rs 34,500 crore at the last closing price of the stocks, according to Reuters calculations.
The government plans to sell 3 per cent of top fuel retailer Indian Oil Corp Ltd and 10 per cent each of top utility NTPC, largest steelmaker SAIL and hydropower producer NHPC Ltd.
It also plans to sell 5 per cent of Rural Electrification Corp Ltd, 10 per cent of Power Finance Corp Ltd and 15 per cent of miner NLC India Ltd.
Some of these firms were listed for stake sale in the last fiscal year too but the programme faltered due to adverse market conditions, forcing the government to revise down its fund-raising target to Rs 45,500 crore.
In 2016-17, the government raised Rs 46,247 crore from asset sales.
($1 = Rs 64.39)
© Thomson Reuters 2017