New Delhi: The Cabinet Committee on Economic Affairs approved disinvestment of 10 % stake in the state-owned Housing and Urban Development Corporation (HUDCO) through an initial public offering, an official release said. CCEA also approved allowing a price discount of up to 5 % on the issue price to retail investors and HUDCO employees.
The actual discount to them will be approved by the Alternative Mechanism based on recommendations of a High Level Committee (HLC) of Officers, it added. The government currently owns 100% stake in HUDCO.
HUDCO reported a net profit of 7.82 bln rupees in 2015-16 (Apr-Mar), up marginally from 7.77 bln rupees the year before.
The government has set a disinvestment target of Rs 56,500 crore for this fiscal. Of this, Rs 36,000 crore is to come from minority stake sale in PSUs and Rs 20,500 crore from strategic sale.
The government has already kickstarted the disinvestment programme for the current fiscal with 11.36% stake sale in NHPC, which fetched Rs 2,700 crore. It has lined up as many as 15 PSUs, including Coal India, NMDC, MOIL, MMTC, National Fertilisers and NALCO.