NTPC, BEL disinvestment process begins with road shows abroad

GN Bureau | October 7, 2015


#PSU   #NTPC   #BEL   #Power Finance Corporation   #IOC   #Dredging Corporation   #Rural Electrification Corporation  


The global roadshows at four locations to attract investments for its big-ticket stake sale in the country’s largest power producer NTPC and BEL began on Monday (Oct 5). The campaign that may fetch around Rs 6,600 crore to the exchequer, will end on October 10.

The ministry of power and NTPC both are conducting roadshows in Singapore, Hong Kong, London and in the US. Roadshows are being held in San Francisco, Boston and New York.

The cabinet has already approved 5 per cent stake sale in NTPC. Both NTPC and Bharat Electronics Limited form part of the basket of two public sector units, which the department of disinvestment had created earlier this year.

According to officials, the government will go ahead with the disinvestment of the two companies based on investor responses in the roadshows and the domestic equity market conditions.

The government has so far been able to collect only Rs 12,600 crore from stake sale of four PSUs - Power Finance Corporation, IOC, Dredging Corporation and Rural Electrification Corporation. For the current fiscal, it plans to raise Rs 69,500 crore, including Rs 41,000 crore via disinvestment of Central Public Sector Enterprises (CPSE) and Rs 28,500 crore from strategic sale of PSUs.

If government achieves Rs 30,000 crore this year, it would still be the highest-ever disinvestment kitty in a year for the government.

The government had in August appointed Deutsche Bank, ICICI Securities, SBI Capital Markets and Edelweiss Financial Services as merchant bankers for the second basket -- which apart from NTPC and BEL, also has Engineers India, NALCO and Hindustan Copper.

DoD had decided to bundle the PSUs in order to reduce the number of roadshows to be conducted by the merchant bankers as that can be clubbed for companies in similar sector.

Finance minister Arun Jaitley last week reviewed the situation in the government's divestment programme in connection with generating revenue, and announcements of stake sale would be made at the appropriate time.

Comments

 

Other News

MMRDA proposes formation of Fare Fixation Committee for Metro Lines 2A & 7

Mumbai Metropolitan Region Development Authority (MMRDA) has proposed the constitution of a Fare Fixation Committee (FFC) for Mumbai Metro Lines 2A and 7, currently operated by Maha Mumbai Metro Operation Corporation Limited (MMMOCL). ‘Fare Fixation’ is mandated under Section 33

‘Op Sindoor not an act of revenge, but a new form of justice’

Emphasizing that Operation Sindoor was not an act of revenge, but a new form of justice, prime minister Narendra Modi on Thursday remarked that it was not just an expression of outrage but a display of India`s unwavering strength and determination. He asserted that the nation has adopted a bold approach, s

An ode to the enduring legacy of India’s temple culture

Dynasties of Devotion: The Secrets of 7 Iconic Hindu Temples By Deepa Mandlik (Translated from the Marathi by Aboli Mandlik) HarperCollins, 232 pages, Rs 399

How to improve India’s crèche system

India stands at a pivotal moment, caught between the promise of a demographic dividend and the crisis of gender inequality. While falling fertility rates, rising female education, and increasing labour force participation signal progress, policymakers continue to neglect one of the most invisible yet vital

Why trademarking ‘Operation Sindoor’ is not advisable

The question of whether the name ‘Operation Sindoor’ or even the standalone term ‘Sindoor’ can be registered as a trademark becomes complex and sensitive when viewed through the lens of its prior use by the Indian armed forces in a counter-terrorism operation. In such cases, the iss

JPC on simultaneous elections hold consultations in Maharashtra

The Joint Committee on the Constitution (One Hundred and Twenty-Ninth Amendment) Bill, 2024, and the Union Territories Laws (Amendment) Bill, 2024, has conducted extensive consultations with key stakeholders in Maharashtra regarding the feasibility and implications of simultaneous elections.

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now



Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter