Breaking News
Nagaland Post Logo
You are here:  Skip Navigation LinksHome » Business » Business News

Govt plans stake sale in IOC, SAIL

NEW DELHI/MUMBAI, Apr 17 (Agencies)
Published on 18 Apr. 2017 12:54 AM IST
Print  Text Size

The government plans to sell stakes worth $5.4 billion in seven state-run companies during the current financial year as it looks to fund its fiscal deficit amid ramped-up spending on rural areas and infrastructure. The part sale of government stakes in state-run and private firms is critical to meet the fiscal deficit target of 3.2 per cent of gross domestic product in the year to March 2018. The government aims to raise Rs 725 billion through stake sales during the year.
The Department of Investment and Public Asset Management has sought bids from merchant bankers and legal advisors to manage the sale of shares in firms including Indian Oil Corp Ltd , NTPC Ltd and Steel Authority of India Ltd (SAIL), according to bidding documents on its website.
The government will sell the stakes through the offer-for-sale route, meaning by auction on stock exchanges.
The sales could fetch the government Rs 345 billion at the last closing price of the stocks, according to Reuters calculations.
The government plans to sell 3 per cent of top fuel retailer Indian Oil Corp Ltd and 10 percent each of top utility NTPC, largest steelmaker SAIL and hydropower producer NHPC Ltd.
It also plans to sell 5 per cent of Rural Electrification Corp Ltd, 10 per cent of Power Finance Corp Ltd and 15 per cent of miner NLC India Ltd.
Some of these firms were listed for stake sale in the last fiscal year too but the programme faltered due to adverse market conditions, forcing the government to revise down its fund-raising target to Rs 455 billion.
In 2016/17, the government raised Rs 462.47 billion from asset sales.

For more updates, follow us on Facebook and Twitter
Tags : in IOC SAIL 
Related News
Comments:(0) Login or Register to post your Comment
(Available for registered users only)
More News
  • 1
  • 2