Govt to sell stake in STC, ITDC, Neyveli Lignite Friday
New Delhi: The government plans to raise about Rs 3,800 crore Friday through sale of its stake in State Trading Corporation (STC), ITDC and Neyveli Lignite Corporation.
While the base price for ITDC has been fixed at Rs 70 apiece, that for STC has been fixed at Rs 74 apiece. The price band for Neyveli Lignite share auction is Rs 58-60 a share.
"The EGoM cleared the floor price for stake sale in STC and ITDC through an OFS. The issue will hit markets tomorrow," Disinvestment Secretary Ravi Mathur told reporters here.
Yesterday, the Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, had cleared 3.56 percent stake sale in Neyveli Lignite Corporation (NLC) through an Institutional Placement Programme (IPP) at a price band of Rs 58-60 a share. The stake sale is expected to fetch Rs 350 crore to the exchequer.
Last month the Cabinet had cleared the proposal to sell 5 percent of government's stake in India Tourism Development Corporation (ITDC) and 1.02 percent in STC through the Offer For Sale (OFS) route.
The government expects the sale of 5 percent stake, or 42.88 crore shares, in ITDC to fetch over Rs 3,000 crore.
Besides, it aims to garner about Rs 454 crore through disinvestment of 1.02 percent, or 6.13 crore shares, in STC, sources said.
Government currently holds 92.11 percent stake in ITDC and 91.02 percent stake in STC.
"ITDC scrip is highly illiquid. So the EGoM has taken a view on the pricing of the disinvestment," Mathur said.
The stake sale would help the three companies meet the minimum 10 percent public holding norm of market regulator Securities and Exchange Board of India (Sebi).
The government is required to bring down its stake in these two companies to 90 percent by August 8.