India aims to follow ONGC share sale with SAIL, PFC

India aims to follow ONGC share sale with SAIL, PFC

New Delhi: India aims to sell stakes in Steel Authority of India Ltd and Power Finance Corp before June, a senior official said, meaning it could generate a significant chunk of its Rs40,000 crore ($8.9 billion) share sale target for the next fiscal year in the first quarter.

Sumit Bose, disinvestment secretary in the ministry of finance, also said the planned sale of a 5% stake in Oil and Natural Gas Corp, which would be worth $2.56 billion based on its current market value, will take place late this month.

Proceeds from the late-March share sale in ONGC would be included in the revenue projections for the next fiscal year.

“SAIL is ready to move, and it is on the fast track. Possibly that will come after ONGC, and then Power Finance Corporation," Bose said in an interview at his office.

The government plans to sell a 5% stake in SAIL, while the company will sell new shares worth 5%, which together would be worth nearly $1.4 billion at current market levels.

It plans to sell a 5% stake in Power Finance Corp, while the company will sell a 15% stake in an offer that would be worth a combined $1.26 billion based on current market levels.

Bose said the government will also consider stake sales in steelmaker Rashtriya Ispat Nigam Ltd (RINL), MMTC and National Buildings Construction Corp (NBCC) in the next fiscal.

India has raised Rs22,000 crore by selling stakes in six state-run companies in the fiscal year that ends 31 March, through three initial public offerings and three follow-on sales in already listed companies.

As expected, finance minister Pranab Mukherjee on Monday said India aims to raise Rs40,000 crore through the sale of minority stakes in the fiscal year that starts on 1 April.