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The Cabinet Committee on Economic Affairs (CCEA) will shortly decide on 11.36 per cent share sale in public sector power producer, NHPC.
“An inter-ministerial panel on Monday discussed the divestment. All routine issues have been discussed,” a senior Government official said. The committee is headed by Disinvestment Secretary Ravi Mathur.
This is a routine procedure for all companies going for a share sale.
The Government currently holds 86.36 per cent equity in the hydro power producer. The divestment is likely to fetch around Rs 2,500 crore.
The company was first divested in 2009, when the Government sold 5 per cent of its equity, while the company issued 10 per cent fresh equity.
Shares were offered at Rs 36 a piece and total mobilisation under the initial public offering was around Rs 6,000 crore. However, investors in IPO burnt their fingers as the current market price has dipped to around Rs 20, losing around 43 per cent at issue price.
On Monday, the NHPC scrip closed 0.96 per cent lower at Rs 20.60, on the BSE.
The company reported a net profit of Rs 311.77 crore for the quarter ended December 2012 on a revenue of Rs 1,010.37 crore. For the full year ended March 2012, the power major reported a net profit of Rs 2,771.77 crore and a turnover of Rs 5,654.69 crore.
In 2013-14, the Government targets to mop up Rs 40,000 crore by selling shares in companies owned by it. In the last financial year, it could achieve only Rs 23,920 crore against the target of Rs 30,000 crore.
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