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Govt may go for disinvestment in 7 more cos

Govt may go for disinvestment in 7 more cos
PTI
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First Published: Tue, Oct 26 2010. 03 51 PM IST
Updated: Tue, Oct 26 2010. 03 51 PM IST
New Delhi: The government is likely to dilute its stake in 7 more companies this fiscal, including 10% disinvestment in Indian Oil Corporation in January and SAIL’s stake sale in February, to meet the target of raising Rs40,000 crore.
The public issue of PowerGrid is expected in the second week of November and of Manganese Ore India Ltd towards the end of November.
That would be followed by Shipping Corporation in the first week of December, while Hindustan Copper public subscription would open on the second week of December, according to the background note of finance ministry for the Economic Editors’ Conference that began on Tuesday.
“The department of disinvestment is hopeful of achieving this (Rs40,000 crore) number,” it added.
The new year will begin with the 20% follow on offering (FPO) of IOC in January, followed by SAIL’s disinvestment in February.
“The follow-on public offering by way of disinvestment of 10% of paid-up equity capital of the company (IOC) in conjunction with issue of fresh equity of equal size by the company is expected to open for public subscription in January 2011,” the note said.
The FPO by way of disinvestment of 5% of paid up capital of SAIL in conjunction with issue of fresh equity of equal size of the company is expected to open for public subscription in February 2011.
The stake sale in Oil and Natural Gas Corporation of India is also under consideration for the current financial year, 2010-11.
Aiming to raise Rs40,000 crore through disinvestment this fiscal, the government has mopped up Rs1,062 crore by divesting stake in Satluj Jal Vidyut Nigam, and Rs960 crore through Engineers India FPO.
Besides, it will raise over Rs15,000 crore from Coal India public issue which closed last week.
Last fiscal, it had raised Rs23,553 crore through stake sale in Oil India, NMDC, REC and NTPC.
The department of disinvestment is in talks with concerned ministries for finalising the quantum of divestment in PSUs like MMTC, Rashtriya Ispat Nigam Limited, Power Finance Corporation, among others.
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First Published: Tue, Oct 26 2010. 03 51 PM IST