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Government begins process to sell stakes in NBCC, HUDCO

FPJ Bureau | Updated on: Wednesday, May 29, 2019, 06:50 AM IST

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New Delhi : The government on Wednesday set the ball rolling for selling additional stake in NBCC and HUDCO, in addition to an initial public offering (IPO) of the power sector company NEEPCO.

The Department of Investment and Public Asset Management (DIPAM) in the finance ministry has invited separate bids from merchant bankers for the three issues, according to public notices.

The DIPAM has proposed to sell additional 10 per cent stake each in construction major NBCC and housing finance company HUDCO, according to the notices. The government currently holds a 73.75 per cent stake in NBCC and 89.81 per cent in HUDCO.

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The proposal is to dilute the stake through the Offer for Sale (OFS) route.

The 25 per cent disinvestment in the North Eastern Electric Power Corporation (NEEPCO), a 100 per cent government-owned company, is proposed through the IPO route.

At current price, 10 per cent stake sale in NBCC could fetch the government around Rs 1,300 crore and Rs 1,100 crore in case of HUDCO. The DIPAM has invited separate bids from merchant bankers for the three disinvestments.

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In 2017-18, disinvestment of 10.19 per cent stake in HUDCO had yielded Rs 1,207.35 crore to the government. In 2012-13 the government came out with an IPO of National Buildings Construction Corporation (NBCC) and diluted 10 per cent stake.

The government in October 2016 had sold 15 per cent stake through an OFS in NBCC for about Rs 2,200 crore.

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Published on: Thursday, August 23, 2018, 12:34 AM IST