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Four merchant bankers including ICICI Securities and Morgan Stanley will manage the over $1 billion follow-on public offer of BHEL, which is expected to hit markets during the Diwali period.
The sale of five per cent stake in power equipment maker BHEL is expected to mop up over $1 billion (about Rs 4,700 crore) for the government.
The government has appointed four merchant bankers -- Morgan Stanley, DSP Merrill Lynch (Bank of America), ICICI Securities and Kotak Mahindra Capital -- for BHEL’s follow-on public offer.
“We expect the issue (FPO) around Diwali time... That’s the best time,” sources said. Diwali falls in the second half of October this year.
The proposed share sale in Bharat Heavy Electricals Ltd (BHEL) is part of government’s ambitious programme to garner Rs 40,000 crore through disinvestment in the current fiscal.
At the end of June quarter, the government held 67.72 per cent stake in BHEL.
The government has mopped up more than Rs 1,100 crore by divesting five per cent equity in Power Finance Corporation (PFC) in the current fiscal.
In the last financial year, disinvestments raked in Rs 22,762.96 crore, much lower than the set target of Rs 40,000 crore.
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