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Centre's sell-off yield at 12,995 crore, target 1.05 trillion

All strategic sell-offs have to be fast tracked to be able to go near the target, the analysts said (Photo: Mint)Premium
All strategic sell-offs have to be fast tracked to be able to go near the target, the analysts said (Photo: Mint)

  • The proceeds from govt disinvestment currently stand at 12,995.46 crore with the inclusion of 637.97 crore realised from IRCTC IPO
  • Market analysts believe the sale of the govt's 53.29% stake in BPCL could fetch at least 57,000 crore, or 53.5% of the fiscal's disinvestment revenue target

The proceeds from government disinvestment currently stand at 12,995.46 crore with the inclusion of 637.97 crore realised from the initial public offer (IPO) of Indian Railway catering arm IRCTC, according to Department of Investment and Public Asset Management (Dipam) data.

During the current financial year 2019-20, 12,995.46 crore have been obtained by the exchequer through disinvestment transactions so far. Prior to the IRCTC proceeds, the government had garnered 12,357.49 crore from divestments.

IRCTC, which is one of the stellar performers among debut listing companies this year, closed trade on the BSE on Friday 874 a share. It now commands a market capitalisation 14,000 crore crore as against a valuation of 5,120 crore ($721 million) it sought through the public offering.

The government's disinvestment target for the current fiscal is 1.05 trillion. It is looking to divest up to 25% stake in another railway subsidiary — RailTel Corporation — through an IPO, and, according to sources here, this will hit the market around mid-January 2020.

Although a very small amount has been generated so far through divestments, market analysts believe the sale of the government's 53.29% stake in BPCL could alone fetch at least 57,000 crore, or 53.5% of the fiscal's disinvestment revenue target.

The value of the government's stake in BPCL, Shipping Corporation (63.75%), ConCor (30%), NEEPCO (100%) and THDC (75%) could be about 84,000 crore at current prices.

However, all strategic sell-offs have to be fast tracked to be able to go near the target, the analysts added.

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