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With less than six weeks of the current fiscal left, the Centre will sell 5 per cent of its stake in Bharat Electronics.
The stake sale of 1.11 crore shares to be carried out through the offer-for-sale mechanism, will remain open for two days – non-retail and institutional investors can bid on Tuesday, while retail investors will bid on Wednesday.
20% reserved for retailersThe floor price has been set at a discount of about 4 per cent from Monday’s closing price of ₹1,559.95 apiece on the BSE.
“The floor price for the offer shall be ₹1,498 an equity share,” said the company in a filing to the BSE. Retail investors will be given a discount of 5 per cent on the cut off price of the shares. As much as 20 per cent of the offer size is also reserved for them.
At this price, the Centre is expected to raise about ₹1,700 crore from the stake sale.
The Centre currently holds 74.41 per cent stake in BEL, which is a public sector undertaking under the Ministry of Defence. It is involved in production of defence communication items and other equipment for armed forces.
For 2016-17, the Centre has lowered its Revised Estimates for disinvestment proceeds to ₹45,500 crore from the Budget Estimate of ₹56,500 crore.
To meet the target, it is also looking at buybacks by PSUs as well as a 5 per cent stake-sale in Nalco.
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