Along with IPOs, we believe that in secondary markets along with OFS/ Blocks there will be appetite for QIPs (primary fundraise into the company).
OFS through stock exchanges, which is for dilution of promoters ’ holdings, rose to Rs 25,811 crore in 2019 from Rs 10,672 crore raised in 2018
As per SEBI guidelines, it is mandatory for companies to offer a minimum 10 percent reservation for retail investors.
The transaction will take place on NSE and BSE and 10 percent of the sale shares shall be reserved for retail investors subject to the receipt of valid bids.
Foreign strategic investors, debt woes drove a surge in deals via offer for sale route in January-June. The first six months of 2019 saw Rs 18,545 cr being offloaded by promoters via the OFS route
The floor price was set at Rs 689.52 per share, roughly a 3 percent discount to the February 11 closing price of Rs 710.35 per share
What is worth noting is that at the discounted price the valuations works to about 1.2 times its estimated FY18 book value and offers a dividend yield of close to 3.3%.
Of its total holding of 80 per cent in Rashtriya Chemicals and Fertilisers (RCF), the government is selling 5 per cent, or over 2.75 crore shares, at a floor price of Rs 74.25.
Given how the government has lined up several OFS in the coming months, it will be in the interest of the retail investor to know just how he can benefit.
Kicking off the divestment process for the current financial year, the government has cleared the sale of stakes in multiple state-owned companies.
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.
NSE is all set to come out with its Rs 10,000 crore IPO and IFCI which holds 3.05 percent stake is in focus. Sanjeev Kaushik of IFCI, speaking to CNBC-TV18, said that boad has taken a decision to offload 25 percent of its direct holding in NSE.
The SUUTI was formed back in 2003 as an extension of the UTI. It consists of 51 companies-8 unlisted and the rest 43 listed. Through SUUTI, the government holds minority stake in these companies and is planning to divest its shareholding.
L&T shares worth Rs 4040.41 crore as per Thursday's closing price are expected to be sold on November 4.
State-run NHPC Ltd on Thursday said that its offer for sale of 6.28 crore shares to eligible employees will open on November 4, 2016.
Government on Saturday raised Rs 2,218 crore from sale of 15 per cent stake in construction company NBCC, with its offer for sale getting over-subscribed.
The two-day share sale, wherein the government is offloading 15 per cent of its equity, attracted bids for over 11.08 crore shares as against 7.20 crore offered to institutional investors on the first day, according to the stock exchange data.
Government will sell 15 percent stake tomorrow in state-owned construction company NBCC at a floor price of Rs 246.50 a share to raise about Rs 2,200 crore.
In accordance with its plan to dilute share in public sector undertakings (PSUs), the government is now looking to sell some of its stake in NMDC, NALCO, BHEL via offer for sale (OFS) route.
Hindustan Copper shares fell more than 4 percent intraday Thursday after the two-day offer for sale issue of 6.47 crore shares began.
Besides the usual OFS (offer for sale) route for disinvestment, the newly created Department of Investment and Public Asset Management (DIPAM) has nudged PSUs to buy back shares if they have extra cash which are not put to use for capital expenditure.
There is no clarity yet on the pricing of the Coal India buyback. However, the total paid-up equity capital of the company is likely to be around Rs 14,000 crore, sources say.
The offer for sale would constitute about 1,45,79,560 shares and will be offered by the existing shareholders (38 percent of the paid-up capital of GSBPL) to QIBs, HNIs and retail investors in India as well as FIIs, FPIs and NRIs eligible to invest in these securities.
The Government of India has considered divesting 12.03 percent stake in the company through OFS route, reports CNBC-TV18.
Rajiv Kumar Agarwal, whole-time member at Sebi says no new regulations are required for P-notes as the existing norms are adequate.