Starting next month, the government will set the ball rolling on its disinvestment programme with as many as 10 public sector undertakings lines up for stake sales including Oil India Ltd (OIL), NTPC Ltd, ITDC, Container Corporation of India Ltd (Concor), Hindustan Copper that would help raise over Rs 22,000
The department of disinvestment also plans to launch the follow on exchange traded fund of central public sector enterprises (CPSE-ETF) that would raise at least another Rs 3,000 crore.
“We are finalising all modalities for stake sales in all these PSUs as well as the follow on ETF so that these can take place over the course of the year without any delays,” said a senior government official.
Accordingly, department has invited applications from merchant bankers and legal advisers for all these issues. On the anvil is disinvestment of 15 per cent government stake in MMTC Ltd and HCL, 12.03 per cent in ITDC, 10 per cent each in OIL, EIL, Nalco and NMDC and 5 per cent each in Concor, NTPC Ltd and BEL.
In a significant change of strategy, disinvestment department now plans to appoint merchant bankers for managing a basket of PSU stake sales.
According to the request for proposal, one set of merchant bankers would be mandated to manage stake sales in OIL, Concor, NMDC, MMTC and ITDC Ltd, while the second set of merchant bankers would manage the disinvestment of government equity in NTPC Ltd, EIL, Bharat Electronics Ltd, Nalco Ltd and Hindustan Copper Ltd.