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New Delhi: The government is planning to list four of its defence public sector units (PSUs) by selling up to 25% stake in each of them through an initial public offering (IPO).

The department of investment and public asset management (DIPAM) has through an advertisement invited bids from registrars for disinvestment of up to 25% stake each in Bharat Dynamics, Garden Reach Shipbuilders & Engineers, Mazagon Dock Shipbuilders and Mishra Dhatu Nigam Ltd.

The bids have to be submitted by 18 August to DIPAM, which handles disinvestment of public sector enterprises, the tender said.

The Cabinet in April cleared the disinvestment of these 4 PSUs under the defence ministry, and thereafter DIPAM invited bids from merchant bankers and legal advisors for managing the stake sales.

Miniratna PSU Bharat Dynamics (BDL) was established in 1970 and 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 (PAT) of Rs563.24 crore in 2015-16 and has a net worth of Rs1,652.23 crore.

Garden Reach Shipbuilders & Engineers was incorporated in 1934 and was taken over by the government in 1960. It primarily constructs 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 PAT for 2015-16 is Rs160.72 crore and net worth stood at Rs1,064.41 crore.

Miniratna PSU Mazagon Dock Shipbuilders (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 1960, the government took over the yard to further augment its warship development programme and incorporated it as a PSU under the ministry. The authorised share capital of MDL is Rs323.72 crore and paid-up share capital is Rs249 crore as on 31 March 2016. The PAT for the fiscal 2015-16 is Rs637.82 crore and its net worth stood at Rs2,846.23 crore.

Mishra Dhatu Nigam (MIDHANI) is engaged in production of metals and alloys as part of an import substitution strategy, which is designed to reduce 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 PAT for the fiscal 2015-16 is Rs118.03 crore while net worth stood at Rs576.56 crore.

The government has already raised over Rs8,800 crore through disinvestment in six companies, including selling stake in L&T through Specified Undertaking of Unit Trust of India (SUUTI), and one share buyback. The government has budgeted to raise Rs72,500 crore through stake sale in PSUs. This includes Rs46,500 crore from minority stake sale, Rs15,000 crore from strategic disinvestment and Rs11,000 crore from listing of PSU insurance companies.

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