Panel to consider 11% stake sale in NHPC tomorrow
An inter-ministerial panel on disinvestment is scheduled to meet Monday to consider 11.36 percent stake sale in hydel-power generation company NHPC, which could fetch government around Rs 2,400 crore.
New Delhi: An inter-ministerial panel on disinvestment is scheduled to meet Monday to consider 11.36 percent stake sale in hydel-power generation company NHPC, which could fetch government around Rs 2,400 crore.
The meeting to decide about disinvestment of National Hydroelectric Power Corporation (NHPC) will be held tomorrow, official sources said.
After the approval of Inter-ministerial Group (IMG), the Department of Disinvestment will float request for proposal (RFP) for appointment of merchant bankers and legal advisors.
The proposed disinvestment of 11.36 percent will be executed through an offer for sale (OFS) of shares by promoters through stock exchange mechanism.
The IMG is headed by Disinvestment Secretary Ravi Mathur. Besides, the panel has members drawn from Ministry of Power, Departments of Legal Affairs, Economic Affairs, Corporate Affairs and Chairman-cum-Managing Director of NHPC.
NHPC got listed on bourses in 2009. The promoter divested 5 percent stake while company issued 10 percent fresh equity. Post stake-sale, the government holding in the company came down to 86.36 percent.
Shares of NHPC closed at Rs 20.80, up 1.22 percent on the BSE on Friday. At the current market price, selling 11.36 percent or over 120 crore shares would fetch the government Rs 2,400 crore.
The government proposes to raise Rs 40,000 crore by way of disinvestment in the current fiscal. The government has already lined up a host of companies, including Coal India, Indian Oil and Hindustan Aeronautics, for stake sale in the current fiscal.
In the last fiscal (2012-13), the government has raised Rs 23,920 crore through disinvestment.