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.
It 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.