Mumbai: The Government has set a target to raise Rs 40,000-crore through disinvestments in 2011 and has lined up public offers of Power Finance Corporation (PFC), SAIL, ONGC and Hindustan Copper in the current fiscal, a top government official said on Monday.
“We have Cabinet approvals for 4 public issues this year. We will kick-off this year’s disinvestment process with the launch of Power Finance Corporation’s FPO, followed by SAIL in June and ONGC issue in July,” Disinvestment secretary, Sumit Bose, said here.
“We will also launch the public offer of Hindustan Copper later this year along with other public sector companies,” Bose said adding the target of disinvestment has been fixed at Rs 40,000-crore this year.
In 2010, Rs 22,400-crore was raised through disinvestment after launching of three IPOs and three FPOs while the SAIL and ONGC issues were rolled-over to this year, he said.
SAIL is expected to raise around Rs 7,000-8,000-crore going by the prevailing market price of the stock. SAIL is likely to keep half of it while the rest will go to the government’s divestment kitty.
India’s largest steel company is in the midst of its largest expansion, with plans to beef up capacity to 21-million tonnes a year in the next couple of years from 13-million tonnes. SAIL will spend nearly Rs 70,000-crore on its proposed expansion plans
The Government also plans to raise Rs 13,000-crore through sale of 5% stake in ONGC. Post offer, the government shareholding in ONGC would come down to 69.14% from the current 74.14%.
The PFC’s Follow-on Public Offer (FPO) is likely to fetch close to Rs 4,700-crore at the upper-end and Rs 4,400 crore at the lower-end of the price-band.
The FPO, which opens on 10 May and closes on 13 May 2011, comprises fresh issue of 17.21-crore equity shares besides 5.74-crore equity shares which is being off-loaded by the Government from the company.