New Delhi, Feb 18: As many as eight public sector companies, including Hindustan Aeronautics and RITES, will hit the capital markets next fiscal as the government intends to unlock the real value of PSUs (public sector undertakings) and bring in greater accountability.
Department of Investment and Public Asset Management (DIPAM) secretary Neeraj Gupta said these initial public offerings (IPO) will be done in a “staggered manner” depending upon the size of the issuance.
“Eight companies are at different stages of preparation (for an IPO) and will enter market at an appropriate time,” Gupta told PTI. Of these, HAL has already secured market regulator Sebi nod for floating an IPO.
The government plans to sell 10% stake in the defence PSU. Besides, four PSUs—RITES, IREDA, Bharat Dynamics and Midhani—have filed their draft papers with Sebi and are awaiting its go-ahead to launch public issue. Through RITES IPO, the government plans to sell 12% stake to raise an estimated Rs600 crore.
The government will sell 13.90 crore shares in Indian Renewable Energy Development Agency (IREDA), while 12% and 25% would be sold in defence PSUs Bharat Dynamics and Mishra Dhatu Nigam (MIDHANI), respectively.
In 2018-19 fiscal, the government has budgeted to raise Rs80,000 crore through PSU disinvestment, which includes strategic sale.
“The government will adopt a comprehensive approach in going about its disinvestment mandate,” Gupta said.
In the current fiscal, which ends in March, the government has already raised over Rs23,600 crore by way of IPOs in four companies. As much as Rs11,372 crore has been raised from General Insurance Corp, Rs9,600 crore from New India Assurance Co., Rs1,442 crore from Cochin Shipyard and Rs1,200 crore from Housing and Urban Development Corp (Hudco).