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Govt looking to sell 5%-10% in Coal India, Hindustan Zinc, RCF: Report

The government is looking to sell a tranche of its stake via the offer-for-sale (OFS) mechanism.

November 25, 2022 / 12:56 PM IST
 
 
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The Indian government is planning to sell 5-10 percent in Coal India, Hindustan Zinc and Rashtriya Chemicals and Fertilizers (RCF), Bloomberg reported on November 25. The report suggested that the sale of small stakes in state-run firms is to push a stock market boom and boost revenue in the final quarter of the financial year.

The government is looking to sell a tranche of its stake via the offer-for-sale (OFS) mechanism.

At present value, the sale at lower end of the range could fetch the Centre around Rs 16,500 crore or $2 billion, as per calculations reported by Bloomberg.

Moneycontrol could not independently verify the report.

Image credit: Bloomberg Image credits: Bloomberg

Moneycontrol reported in May this year that the Union Cabinet has approved sale of government's entire stake in Hindustan Zinc Limited.

Hindustan Zinc was a majority government-owned company. The government had earlier offloaded 26 percent stake in the firm in 2002, which was bought by Anil Agarwal-led Vedanta Group. The mining giant later acquired a further stake in the company to take its holding to 64.92 per cent.

Meanwhile, to be in-line with its divestment plans, the government is planning to bring four important offers for sale - Coal India, NTPC, Hindustan Zinc and RITES - over the next four, CNBC-TV18 reported earlier this month.

According to other media reports, the government is also planning to sell 10-20 percent of its stake in Rashtriya Chemicals Fertilizers (RCF) and National Fertilizers (NFL) this year.

The disinvestment target for the year 2023-24 may be set at around Rs 65,000 crore, Financial Express (FE) had reported. So far, it has risen more than Rs 24,000 crore as disinvestment receipts in the current fiscal, as per the information available on the Department of Investment and Public Asset Management (DIPAM) website.
Moneycontrol News
first published: Nov 25, 2022 12:34 pm