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.
In early trade Tuesday, the government has divested 2 percent of its stake held in ITC held through the Specified Undertaking of the Unit Trust of India (SUUTI).
Naveen Jindal-led JSPL has said it is exploring various options, including divestment, to reduce its debt of around Rs 46,000 crore.
A more diversified CPSE ETF should provide plenty of wealth creation and value unlocking opportunities for retail investors, experts say.
"Listing of IRCTC will be a big time ticket item and will have huge consequences," a release by RP Sanjiv Goenka group quoting Union Finance minister Arun Jaitley as saying said.
If we observe the 3 previous Budgets presented by Jaitley, it can be clearly seen that the focus of team NAMO remains the same and this government means business as usual.
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.
On Wednesday, Finance Minister Arun Jaitley announced a divestment target of Rs 72,500 crore for FY18, 60 percent higher than the previous fiscal's revised estimate of Rs 45,500 crore.
The Survey also says that the capacity of the State in delivering essential services such as health and education is weak due to low capacity, with high levels of corruption, clientelism, rules and red tape.
The Centre on Monday decided to sell the stake in the firm through an offer for sale at a floor price ofRs 365 per share.
The heavy industries ministry is chalking out a plan to sell off seven non-operational units of Cement Corporation of India (CCI) in the initial phase as part of strategic sale of the loss-making state-owned firm.
Shares of BEML surged nearly 20 percent intraday Monday after the government decided to divest major stake in the company.
Besides Essel Infra, investment manager IDFC Alternatives, US-based private equity firm I Squared Capital and Uniquest Infra Ventures Pvt Ltd -- a joint venture of Malaysia‘s UEM Group and IDFC Ltd -- are learnt to have expressed interest in buying Lanco's road assets, a source told Moneycontrol.