FIIs press for higher share allocation in disinvestment
A group of foreign institutional investors (FIIs) today pressed for higher allocation of shares at the time of stake sale in state-owned companies.
New Delhi: A group of foreign institutional investors (FIIs) today pressed for higher allocation of shares at the time of stake sale in state-owned companies.
"We have asked the FIIs to send a paper to us this week on the their issues. Although the Department of Disinvestment (DoD) will take the final call, we can push for it if their demand is genuine," a Finance Ministry official said after the meeting with the representatives of FIIs.
The FIIs are reportedly pressing for special treatment so that they can apply for larger quantum of shares during the disinvestment of PSUs.
At present, FIIs are clubbed with the qualified institutional buyers (QIBs) which are entitled to buy up to 50 percent of shares being sold through IPO and FPOs. Besides
FIIs, the QIBs include insurance companies, banks and mutual funds.
The retail investors can by 35 percent shares, the High Networth Investors (HNIs) can get up to 15 percent of shares sold.
The government proposed to raise Rs 40,000 crore through sale of equity in the public sector undertakings during the current financial year.
However, it has so far raised only Rs 1,145 crore through stake sale in Power Finance Corporation (PFC) and there are apprehensions that it may miss the mammoth Rs 40,000 crore target for the current fiscal.