The Government has completed disinvestment in Bharat Heavy Electricals Ltd through a block deal. Now, it is likely to dilute stake in IndianOil Corporation on March 14.
Exchequer gets ₹1,888.93 cr According to information posted on the website of the Bombay Stock Exchange, Life Insurance Corporation of India picked up 11.41 crore shares at the rate of ₹165.55 apiece on Monday. This yielded ₹1,888.93 crore to the Government.
Following the transaction, the Government’s shareholding in the engineering and capital goods major has come down to a little over 63 per cent, while LIC’s holding will go up to 10.69 per cent.
Now, all eyes are on another block deal — ONGC and Oil India buying 5 per cent each in IndianOil. This deal is expected to give ₹5,300 crore to the Government.
ONGC’s newly appointed Chairman and Managing Director DK Saraff said it is a good investment and can remain as portfolio investment. ONGC already owns 8.77 per cent in IndianOil.
“The type of dividend we receive shows it is a good investment. If you see the stock price, it has depreciated a lot because of the subsidy regime, but it will go away in some time. If given the option, I am willing to buy more than 5 per cent,” Saraff said.
With BHEL and IndianOil stake dilution, disinvestment proceeds in the current year could touch ₹12,780 crore.
CPSE ETF soon The Centre also aims to launch the Central Public Sector Enterprises Exchange Traded Fund (CPSE ETF) in the next few days.
All together, the Government is likely to achieve the revised target of ₹16,027 crore. The Finance Ministry had fixed a target of ₹40,000 crore in the Budget announced last year.
The Ministry also hopes the Specified Undertaking of Unit Trust of India will be able to complete the sale of half its stake in Axis Bank through the qualified institutional placement route within this month. This sale is expected to give the Government between ₹7,500-9,000 crore.
The undertaking currently holds 20.72 per cent in Axis Bank of which a little over 10 per cent is to be sold through the block deal. It has already appointed three merchant bankers JP Morgan India, Citigroup Global Markets India and JM Financial Consultants for the sale.