BackDoD said to appoint bankers soon for NHPC 11.36% stake sale
The disinvestment department will soon float a request for proposal merchant bankers for the up to Rs3,000 crore sale
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New Delhi: The department of disinvestment (DoD) will soon appoint merchant bankers for a 11.36% stake sale in NHPC Ltd that could fetch about ₹ 3,000 crore for the exchequer.
The inter-ministerial group (IMG) on disinvestment met last Friday and approved selling 11.36% in NHPC through an offer for sale (OFS), an official said.
“The DoD will soon float a request for proposal to select merchant bankers who will manage the stake sale," the official said, adding that up to three merchant bankers would be appointed.
At the current market price of ₹ 24 apiece, the sale of 11.36%, or about 1.25 billion shares, would fetch about ₹ 3,000 crore. The government holds a 85.96% stake in NHPC.
The stake sale would help the company comply with the minimum 25% public shareholding norm of capital markets regulator Sebi (Securities and Exchange Board of India).
The DoD is in the process of preparing a draft Cabinet note for inter-ministerial consultation for the NHPC stake sale.
In the current fiscal year, the government plans to mop up ₹ 43,425 crore from selling stakes in PSUs (public sector undertakings).
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