Govt seeks legal advisers to sell Oil India, NTPC, EIL stakes

Govt seeks legal advisers to sell Oil India, NTPC, EIL stakes

FPJ BureauUpdated: Saturday, June 01, 2019, 12:30 AM IST
article-image

NEW DELHI : The government will sell a minority stake in the nation’s biggest power producer NTPC, as well as in Oil India Ltd and three other PSUs as part of its disinvestment drive.

 The Department of Disinvestment today sought bids to appoint legal advisors for sale of stake in five PSUs through an offer for sale (OFS), besides a follow on offer of the CPSE Exchange Traded Fund.

 The disinvestment department plans to sell 15 % stake in Hindustan Copper Ltd (HCL), 10 % each in Oil India (OIL) and Engineers India (EIL) and 5 % each in NTPC and Bharat Electronics Ltd (BEL).

 As regards the ETF, it said: “The government intends to launch a Follow-on Fund /Tap/Tranche Offer of existing Central Public Sector Enterprises Exchange Traded Fund (CPSE ETF) Scheme comprising stocks of ten listed CPSEs”.

 While NTPC disinvestment could garner Rs 5,724 crore, part stake sale in OIL could fetch Rs 2,723 crore. Disinvestment in BEL would fetch Rs 1,366 crore, while Rs 874 crore is expected from HCL and Rs 813 crore from EIL divestment.

 The Finance Ministry is also planning to launch a revamped and retail investor-friendly CPSE Exchange Traded Fund (ETF) by October in which cash rich EPFO and NPS could park their money along with individual investors.

The government had first launched a CPSE ETF, comprising scrips of 10 PSUs, in March 2014 under which retail investors have to invest a minimum of Rs 5,000 to buy units.

It had raised Rs 3,000 crore through the ETF then.

 For the current fiscal, the government has set a target of raising Rs 69,500 crore through disinvestment. Of this, Rs 41,000 crore would come from sale of minority stake and Rs 28,500 crore from strategic stake sale.

The government holds 67.64% stake in country’s second largest explorer OIL, 74.96 % in NTPC, 69.37% in EIL, 75.02 % in BEL, and 89.95 % in HCL.

Bidding in OFS segment

Leading stock exchange BSE has issued a new set of guidelines for bidding in the Offer for Sale segment, that requires companies to disclose their OFS plans two banking days in advance. The new norms could lead to most OFS taking place on Mondays.            Currently, companies are required to give an advance notice of two trading days before the OFS, which the government has been saying gives scope for the speculators to beat down the share price of the disinvestment-bound PSUs.

[alert type=”e.g. warning, danger, success, info” title=””]

Rupee at 2-mth high of 63.44 on FII inflow

Surging for the fourth straight day, the rupee gained 7 paise to end at 63.44 against the dollar on sustained dollar selling by banks and exporters amidst a soft greenback overseas.                Besides, robust capital inflows and rallying local equity markets supported the trading sentiment.          Overall sentiment was largely optimistic following upbeat views from RBI Governor Raghuram Rajan that the economy is picking up and the country can withstand any crisis emerging from the Greek fallout.  Meanwhile,  the benchmark BSE Sensex  rose by 147 points to regain 28,000-mark, largely driven by gains in banking, capital goods and FMCG stocks on renewed buying interest by foreign investors and higher government spending.  On weekly basis, Sensex and Nifty has gone up by 281 points (1.01%) and 103.80 points (1.23%), respectively, completing their third straight weekly gain.

[/alert]

Divestment overdrive

l Govt invites bids for advisers for 5% divest in Bharat Electronics, 10% divest in Engineers India
l Govt invites bids for legal advisers to divest 5% in NTPC, appoint legal advisers for PSU ETF
l Govt to divest 15% paid-up equity capital in Hind Copper via OFS
l Govt invites legal advisors’ applications for Hind Copper divest
l At the current market prices, the stake sale in five PSUs could fetch the exchequer around Rs 11,500 crore.

RECENT STORIES

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu..."; Here's How To Save...

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu...

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

A Big Relief For Byju's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29 Amid...

A Big Relief For Byju's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29 Amid...