The union government has invited Expression of Interest (EoI) to sell its entire stake in Pawan Hans Limited (PHL).
Any domestic or global player can submit its bid by January 19, while shortlisted bidder will be intimated about selection by February 17.
This will be second attempt to sell as the Government had to withdraw its offer in 2018 as it could not get suitors.
“The Government has ‘in-principle’ decided to disinvest its entire equity shareholding in the company by way of strategic disinvestment to investor(s) along with transfer of management control,” the Preliminary Information Memorandum (PIM) said. Department of Investment & Public Asset Management on behalf of Central Government will conduct the transaction and has appointed SBI Capital Markets Limited (SBICAP) as its advisor to advise and manage the strategic disinvestment of the company.
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ONGC has also decided to offer its entire shareholding of 49 per cent in PHL to the successful bidder at the same discovered price per share and on same terms & conditions as agreed by the Centre, except for the rights available exclusively to it. The successful bidder, as identified by government, will have the option to buy entire ONGC stake of 49 per cent in PHL on similar price and term
The company’s authorized capital as on March 31, 2020 is ₹560 crore (5,60,000 equity shares of ₹10,000 each.
Fleet size, revenues
PHL is a Central Public Sector Undertaking (CPSU) under Civil Aviation Ministry. At present, the government owns 51 per cent, while 49 per cent is owned by ONGC. PHL is India’s leading helicopter company (with the largest fleet size) engaged in providing helicopter services for various purposes such as offshore operations, inter island transportation, connecting inaccessible areas, pipeline surveillance, casualty and rescue work, charter services, VIP transportation, services under Regional Connectivity Scheme and various other customized services.
As of now, the company has 42 helicopters in its fleet. However, average monthly deployment is 30.
The company is in loss for last two fiscal years. During FY2018-19, it earned ₹414 crore, while its loss was ₹69.20 crore. During FY2019-20, its total revenue came down to ₹376.82 crore and loss dropped to ₹28 crore. According to PIM, revenue declined in FY20 due to ageing of helicopters as vintage clauses enforced by various customers act as a hurdle to participate and win new businesses. Moreover, as on March 31, 2020, out of 42 helicopters, five helicopters were under impairment (cannot be repaired as their spares are not available) and one has been dispatched for overhaul to Russia. However, PHL is in the process of leasing of additional helicopters, details of which have been mentioned earlier, to improve its revenue, the document said.