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Moving ahead with its disinvestment programme, the Centre has finalised plans to sell stakes in two more public sector firms.
The Department of Investment and Public Asset Management (DIPAM) has invited bids from merchant bankers to sell 15 per cent stake each in State Trading Corporation and MMTC this fiscal. The two transactions would, however, fetch just about ₹655 crore to the exchequer.
Disinvestment in both the firms will be done through the offer-for-sale route. The government also plans to reserve 5 per cent of the offer size for employees of the two firms who will also be given a 5 per cent discount on the issue price.
Timeline for bids“The government will select and appoint up to two merchant bankers, who together will form a team and would be called book running lead manager(s),” it said for both the transactions, adding that all bids should be submitted by May 30.
The Centre currently holds 90 per cent stake in State Trading Corporation, which is a mini-ratna PSU under the Commerce Ministry.
On Monday, its scrip fell 2.4 per cent to close at ₹93.40 a piece on the BSE. The Centre is likely to raise about ₹85 crore through this divestment.
Similarly, the Centre holds 89.93 per cent equity in MMTC. Its scrip gained 0.8 per cent and closed at ₹38 a piece on the BSE. At this price, the stake sale will fetch about ₹570 crore.
The Centre has targeted raising ₹36,000 crore from minority stake-sales in PSUs this fiscal. Over the last one month, it has increased its disinvestment line-up to include NMDC, Oil India, Rashtriya Chemicals & Fertilizers and National Fertilizers.
The government has already kick off the disinvestment programme for the current fiscal with an 11.36 per cent stake sale in NHPC that fetched about ₹2,700 crore.
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