The Centre has kick-started the process for ‘strategic sale’ of equity stakes in public sector undertakings. First off the blocks will be BEML, in which the Narendra Modi government intends to sell a 26 per cent stake. The Centre has a 54.03 per cent stake in BEML.
The Department of Investment and Public Asset Management (DIPAM) has sought bids for engagement of a “transaction advisor” for strategic disinvestment of BEML, official sources said.
The transaction advisor is expected to provide advisory services and manage the disinvestment process.
BEML has three major business verticals — mining and construction, defence, and rail and Metro. For the current fiscal year, the Centre aims to mop up ₹56,500 crore through divestment of its stake in PSUs.
Share sales & buybacksIt has already garnered ₹23,500 crore (before the recent Central Public Sector Enterprises Exchange Traded Fund) this fiscal through share sales and share buybacks by the companies.
If one were to include the near ₹6,000-crore mop-up from the just-concluded CPSE-ETF, the government has garnered ₹30,000 crore from PSU disinvestments this fiscal year. This includes ₹480 crore that the Centre mobilised through a 10 per cent stake sale in MOIL on Wednesday.
The Reliance Mutual Fund managed CPSE-ETF, which closed on January 20, saw bids worth ₹13,802 crore as against the issue size of ₹6,000 crore.
Retail investors are expected to get nearly half the allotment of the ₹6,000 crore in the second tranche of the CPSE ETF.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.