Edelweiss Securities, Goldman Sachs and Deutsche Equities are the merchant bankers advising the government on the share sale
Divestment is being done with a purpose to share the wealth of the company with the public, said Neeraj Kumar Gupta, DIPAM Secretary.
Clarifying on the 'conflict of interest' clause, the department of public asset management (Dipam) has allowed the participating investment banks to take up certain types of capital market offerings by rival companies in the private sector.
The Securities and Exchange Board of India (SEBI) and the government are looking at various options to work around the challenges the Centres faces to offload its stakes in public sector companies to meet the August 2017, reported Business Standard.
The official said that options like offer for sale (OFS), share buyback, block deal and exchange traded fund (ETF) were used for the first time to carry out the divestment procedure.
Two months after the Union Cabinet gave a go ahead to the listing of five general insurance companies, the Department of Investment and Public Asset Management (DIPAM) has set the ball rolling for listing of GIC Re
The companies listed so far include National Textile Corporation, Fertilisers and Chemicals Travancore, Hindustan Antibiotics, Scooters India and Hindustan Fluorocarbons.
The central government is likely to write to the market regulator Securities and Exchange Board of India (SEBI) for accelerating equity offer documents. This will help the regulator meet its aim of timely listing of the public sector undertakings (PSUs), reports today‘s Business Standard.
Speaking to CNBC-TV18, Neeraj Gupta said that investors are willing to invest in success story of public sector undertaking (PSU) companies and the high demand in the PSU equity is a healthy trend.
The government will begin tomorrow 5 percent stake sale in state-owned aerospace and defence company Bharat Electronics Ltd to raise about Rs 1,600 crore.
ONGC will have to settle dues worth Rs 2500 crore and this could have a Rs 1600-1700- crore impact on profit, says Director-Finance AK Srinivasan.
Sources told the Indian Express the announcement on listing of the 3 PSUs came barely two days after the issue was first discussed at a meeting on Monday.
Going ahead all profit making CPSEs are expected to go to the market and that there is a lot of appetite for new exchange traded funds (ETFs), says Neeraj Kumar Gupta, Secretary, DIPAM.
The Department of Investment and Public Asset Management (DIPAM) has so far realized about Rs 30,000 crore of disinvestment revenues.
The broad divestment policy remains the same and department is looking to achieve divestment target through minority stake sale, strategic sale, listing of CPSEs, consolidation of oil sector and listing of insurance companies.
Government will sell 10 percent stake in state-owned manganese miner MOIL tomorrow at a floor price of Rs 365 a share, which will fetch around Rs 480 crore to the exchequer.
Government has kick-started the process of strategic sale of 26 percent equity in BEML, inviting bids from advisers on the issue.
In an interview to CNBC-TV18 Neeraj Kumar Gupta, Secretary, Department of Investment and Public Asset Management (DIPAM) spoke about his views on Central Public Sector Enterprises Exchange Traded fund (CPSE ETF).
The government has managed to garner over Rs 23,500 crore through selling its stake in public sector enterprises during the first nine months of the current fiscal, representing nearly 60 percent of the disinvestment target, said Manish Singh, Joint Secretary, Department of Investment and Public Asset Management (DIPAM)
Reliance Mutual Fund, an arm of Reliance Capital will launch a further fund offer of CPSE ETF or Central Public Sector Enterprises Exchange Traded Fund on January 17 and the offer will remain open until January 20.
The Union Cabinet today gave in-principle approval to NITI Aayog's proposal for strategic sale of state-owned firms and entrusted DIPAM with the task of finalising the PSUs in which management control can be transferred to private players.
The government is likely to launch disinvestment in NMDC, NALCO and MOIL in the January-March quarter of the current fiscal, which could fetch about Rs 6,000 crore to the exchequer.
Earlier, the merchant bankers were not permitted to enter into any competing transaction for entire three years for which they are being hired and hence, the bankers had approached DIPAM for a change in the clause.
After merchant bankers raised concerns, the Finance Ministry has diluted the conflict of interest clause for bankers managing SUUTI stake sale while also deciding to expand the panel of bankers for the issue.
Government can use the PPP mode and global bidding process to optimally utilise idle assets of PSUs with a view to promote skill development and generate new jobs, newly appointed Minister of State for Finance Arjun Ram Meghwal has said.