In order
to dilute stakes through Offer for Sale (OFS) route the government, on 22
August 2018, initiated the process to sell stakes in HUDCO, NBCC in addition to
an IPO of state—owned power company NEEPCO. In addition to fetch revenue it
will help comply with SEBI’s mandatory norm for PSUs to ensure a minimum public
shareholding of 25 per cent. As per
the proposal additional 10 per cent stake would be sold each in HUDCO &
NBCC. The Govt currently holds a 73.73 per cent stake in NBCC and 89.80 per
cent in HUDCO whereas NEEPCO is 100 per cent state-owned company. Reportedly,
25 per cent divestment in NEEPCO is proposed through the IPO route. NBCC and
HUDCO are expected to fetch the govt Rs 1300 & Rs 1100 Crs respectively.
For three issues the Dept of Investment and Public Asset Management (DIPAM) has
invited bids from various merchant bankers.
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Govt begins process to sell stakes in NBCC, HUDCO
By IndianMandarins - 2018-08-23 11:57:50
In order to dilute stakes through Offer for Sale (OFS) route the government, on 22 August 2018, initiated the process to sell stakes in HUDCO, NBCC in addition to an IPO of state—owned power company NEEPCO. In addition to fetch revenue it will help comply with SEBI’s mandatory norm for PSUs to ensure a minimum public shareholding of 25 per cent.
As per the proposal additional 10 per cent stake would be sold each in HUDCO & NBCC. The Govt currently holds a 73.73 per cent stake in NBCC and 89.80 per cent in HUDCO whereas NEEPCO is 100 per cent state-owned company. Reportedly, 25 per cent divestment in NEEPCO is proposed through the IPO route. NBCC and HUDCO are expected to fetch the govt Rs 1300 & Rs 1100 Crs respectively. For three issues the Dept of Investment and Public Asset Management (DIPAM) has invited bids from various merchant bankers.
