New Delhi: The government has identified six profit making PSUs, including four from defence sector, for accessing the capital market in the current fiscal and listing on stock exchanges.
The Department of Investment and Public Asset Management (DIPAM) is scouting for merchant bankers and legal advisors to advise the government on the Initial Public Offering (IPO) of MSTC, NEEPCO, Bharat Dynamics Ltd, Garden Reach Shipbuilders & Engineers Ltd, Mazagon Dock Shipbuilders Ltd and Mishra Dhatu Nigam Ltd.
The government currently holds 100% stake in all these six companies. The merchant bankers are required to submit their bids by 2 May.
MSTC, a miniratna PSU under the steel ministry, is a trading house and renders services to the steel and petrochemical sectors for raw material support and seamless e-commerce service. Its authorised share capital is Rs50 crore as on 31 January 2017, and profit-after-tax for FY 2015-16 is Rs59.88 crore. The company’s net worth stood at Rs732.48 crore.
Another miniratna PSU North Eastern Electric Power Corporation Ltd (NEEPCO) is under the control of the power ministry and has a portfolio of hydro, thermal and renewable projects. The company has generated 5,220 MU of electricity in 2015-16 and provides about 40% of the energy requirement of the North East region of India. The authorised share capital of the company is Rs5,000 crore and the profit-after-tax for the fiscal 2015-16 is Rs372.55 crore. Its net worth stood at Rs5,988.28 crore.
Miniratna PSU Bharat Dynamics Ltd (BDL) is under the administrative control of the defence ministry. Established in 1970, the PSU is a manufacturer of guided missiles and allied defence equipment. The authorised share capital is Rs125 crore and the paid up equity capital is Rs122.19 crore as on 31 January 2017. BDL earned a profit-after-tax of Rs563.24 crore in 2015-16 and has a net worth of Rs1,652.23 crore.
Garden Reach Shipbuilders & Engineers Ltd is also under the administrative control of the defence ministry. It was incorporated in 1934 and was taken over by the Government of India in the year 1960 and the primary objective of the company is to construct warships and auxiliary vessels for the Navy and the Coast Guard. Its authorised share capital is Rs125 crore and paid-up share capital is Rs123.84 crore as on 31 January 2017. The company’s profit-after-tax for 2015-16 is Rs160.72 crore and net worth stood at Rs1,064.41 crore.
Miniratna PSU Mazagon Dock Shipbuilders Ltd (MDL) is the lead shipyard of India serving the nation’s strategic requirements. At present, MDL is constructing three major warship building projects and one submarine project. It was established as a public limited company in 1934. In the year 1960, the Government of India took over the yard to further augment its warship development programme and incorporated it as a PSU under the ministry of defence. The authorised share capital of the company is Rs323.72 crore and paid up share capital is Rs249 crore as on 31 March 2017. The profit-after-tax for the fiscal 2015-16 is Rs637.82 crore for Mazagon Dock Shipbuilders Ltd and its net worth stood at Rs2,846.23 crore.
Mishra Dhatu Nigam Ltd (MIDHANI) is also under the control of the defence ministry and is engaged in production of metals and alloys as part of an import substitution strategy, which is designed to reduce the India’s reliance on foreign suppliers and achieve self-sufficiency. The authorised capital of the company is Rs200 crore and the paid up capital is Rs187.34 crore as on 31 January 2017. Its profit-after-tax for the fiscal 2015-16 is Rs118.03 crore while its net worth stood at Rs576.56 crore.
In the 2017-18 Budget, the government set a target of Rs46,500 crore to be mobilised through minority stake sale and Rs15,000 crore from strategic disinvestment.