The Hindu Business Line : Govt invites bids for advisors for selling residual stake in CMC

THE Ministry of Disinvestment on Monday invited expressions of interest (EoIs) to select an advisor to assist and advise the Government for selling its residual stake of 26.25 per cent in software firm CMC Ltd through a domestic offering.

EoIs are invited by November 17 from merchant/investment bankers either singly or as a consortium with specific expertise in capital market offerings to act as coordinator-cum-advisor, a Disinvestment Ministry official said.

Tata Sons Ltd had acquired a 51 per cent controlling stake in CMC Ltd from the Government in 2001.

The sale of residual Government stake in CMC follows a decision taken by the Cabinet Committee on Disinvestment (CCD) in July this year to withdraw totally from Balco, VSNL, IPCL, IBP and CMC, which were privatised through the strategic sale route.

The Government seeks to realise a better price for its shares in the domestic offering in these entities, riding on the strength of the strategic partners such as Reliance Industries Ltd in IPCL, Tata Sons Ltd in VSNL and CMC Ltd, Sterlite Industries Ltd in Balco and IOC in IBP & Co Ltd.

The Disinvestment Ministry has already invited EoIs for advisors to the sale of residual Government equity in IPCL and IBP & Co Ltd. The domestic float in IPCL, IBP & Co Ltd, CMC Ltd together with a public offer of 20 per cent Government equity in Dredging Corporation of India are expected to hit the market early next year.

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