Finance Minister Arun Jaitley will lead the Pawan Hans divestment panel which will meet at the end of August.
The panel will decide on matters relating to terms and conditions of the sale from the stage of inviting of expressions of interest (Eols) till inviting of financial bid.
The ETF will be a portfolio of six sectors--basic materials, energy, finance, FMCG, as well as industrial and utilities, Jaitley said. There will be a sectoral capping of 20 percent and a single company stock cap of 15 percent.
The sale of 4 percent stake or over 3.70 crore shares at Rs 64.75 apiece would fetch about Rs 240 crore to the exchequer.
In June this year, CG Power and Industrial Solutions had announced execution of the stock purchase agreement (SPA) for divestment of its power business in the US, comprised in its wholly owned overseas step-down subsidiary, CG Power USA Inc to WEG Electric Corp, a nominee of WEG SA, a Brazilian public listed company.
The two-day offer for sale (OFS) opened for retail investors today and was over-subscribed 1.66 times.
The offer will be open for institutional investors tomorrow and retailers can place their bets on Thursday
In a letter to the staff, chairman Ashwani Lohani not only allayed the concerns of the staff regarding layoffs at the time of divestment, but also told them that in the new work culture merit would get a better deal With privatisation on cards, Air India will benefit from the corporate culture that the new owner will bring along, believes Chairman Ashwani Lohani.
The committee will also study and suggest ways to treat the unsustainable debt of Air India; hiving off certain assets to a shell company and demerger and strategic divestment of the airline’s profit-making subsidiaries.
Finance Minister Arun Jaitley said that a Group of Ministers (GoM) will be formed to look into Air India's divestment.
In the past, the government has received criticism for asking LIC to buy stake in ITC, a tobacco company.
In an exclusive interview with CNBC-TV18, Jaitley said that the government is open to various options with respect to its stake in Axis Bank, which it holds through SUUTI.
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.
Sources privy of this development tell CNBC-AWAAZ that the government might announce its exit from ITDC in the next 4-5 weeks and has listed 3 ways in which it may do so.
Kicking off the divestment process for the current financial year, the government has cleared the sale of stakes in multiple state-owned companies.
The government has raised a record Rs 46,247 crore through disinvestment, of which Rs 10,779 crore has come from strategic disinvestment and SUUTI's investment.
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.
The companies listed so far include National Textile Corporation, Fertilisers and Chemicals Travancore, Hindustan Antibiotics, Scooters India and Hindustan Fluorocarbons.
Sources privy to the development say that this ETF would be larger than the Central Public Sector Enterprises (CPSE) ETF, a fund unveiled in 2014 that was made up of the government’s shares in state-owned companies.
Speaking to CNBC-TV18, Nidhesh Jain said that the divestment announcement its non-core assets which includes Rs 2,000 crore of equity investments in listed and unlisted equities is also a major positive.
The group has hired UBS to explore a potential sale or initial public offering of the Swiss-based business, which could take place as early as after the European summer, they added.
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 board of directors of the bank, on February 21, has approved in-principle, the proposal to divest some of its non-core investments," the state-run lender said in its filing.
The government is likely to divest between 5 to 10 percent in Coal India by August, reports the Economic Times today. The move could bring down the government‘s stake in the company to roughly 69 percent from 79.78 percent and add Rs 20,000 crore to its divestment earnings.
SBI will be a global player, controlling 25 percent of the Indian banking industry, after the merger with its associate and subsidiary units, Finance Minister Jaitley said in an exclusive interview to CNBC-TV18.