New Delhi: Shares of several state-owned companies climbed on Friday on hopes the government would reduce its stake in these firms. Bharat Heavy Electricals Ltd (BHEL), Centre’s power equipment producer, gained 27%, taking the market value of the company to around 19,800 crore.

According to news reports, the government is likely to consider selling its stake in a number of public-sector enterprises and bringing it below 51%. The Cabinet Committee of Economic Affairs is expected to take up a strategic disinvestment proposal as early as next week.

Shares of Hindustan Copper Ltd and MMTC Ltd surged more than 15% in today’s session. The New India Assurance Company Ltd, MOIL Ltd, NBCC (India) Ltd, NLC India Ltd, General Insurance Corporation of India Ltd (GIC Re), National Aluminium Company Ltd, Steel Authority of India Ltd (SAIL), IFCI Ltd and Shipping Corporation of India Ltd (SCI) rose in the range of 5-10%.

Also read: Why disinvestment can break the shackles around BHEL

Stocks of Bharat Electronics Ltd and India Tourism Development Corporation Ltd (ITDC) touched their respective 52-week highs of 120.7 and 368.5 in early deals today.

In September, a group of secretaries had approved sale of the government’s entire shareholding in four public-sector companies—Bharat Petroleum Corporation Ltd (BPCL), SCI, THDC India Ltd and NEEPCO Ltd. It had also cleared sale of 30% equity of Container Corp of India (Concor) from the Centre’s holding.

The government owns 63.17% stake in BHEL and plans to bring it down to 26% in tranches, said a CNBC Awaaz report. It holds 53.29% stake in BPCL, 54.8% in Concor and 63.75% in SCI. THDC is a 75:25 joint venture between the Centre and the Uttar Pradesh government. The Centre owns entire equity of NEEPCO.

The government has proposed raising 1.05 lakh crore from disinvestment in the current financial year. It had surpassed its asset-sale targets of 1 lakh crore in 2017-18 and 80,000 crore in 2018-19.

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