The government has proposed the sale of 10 per cent stake in NTPC as it prepares to kick off its ambitious disinvestment programme for the next financial year.
The department of disinvestment (DoD) has already circulated a cabinet note for sale of shares in the state-owned power producer that could bring in close to Rs 12,500 crore.
The sale of 10 per cent shares will be through auction on stock exchanges. The government currently holds 74.96 per cent in NTPC.
As per rules, 10 per cent of the total shares on offer will be reserved for retail investors who will get a five per cent discount, according to the cabinet note.
The government has set a target of Rs 41,000 crore from selling shares in companies it owns, much higher than Rs 24,276 crore it raised in this financial year that ends in a fortnight.
In this financial year, it could sell stakes in Coal India and SAIL. The government has started the process of getting companies ready for stake sale. With the inclusion of NTPC, the list of those companies will go up to 10. This has been done so that the government can take advantage of the favourable market conditions at a short notice and cut the time taken for marketing and selling the issue.
Other firms that are in line for disinvestment include ONGC, IOC, Nalco, REC, MOIL, Dredging Corporation and BHEL.
On Tuesday, the government told Parliament in reply to a question that it intends to tap other state-run oil companies apart from ONGC and IOC for disinvestments, including HPCL, BPCL, OIL, Gail and Engineers India.
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