Reports that the Cabinet Committee on Economic Affairs are likely to consider the proposal of disinvestment in as many as five public sector undertakings on Friday, lifted those stocks. These companies are Oil India, Hindustan Copper, Neyveli Lignite Corporation, National Aluminium and MMTC.

National Aluminium jumped 3.74 per cent, Neyveli Lignite moved up 2.86 per cent, MMTC gained 1.31 per cent, Hindustan Copper firmed up 1.93 per cent and Oil India inched up 0.41 per cent.

“Going by the current market value, the Government is expected to earn Rs 10,000 crore from selling shares in these five PSUs,” a senior Government official told Business Line .

While the official did not mention the modality to be adopted for the disinvestment in four companies, for Neyveli Lignite, the CCEA may propose to use ‘offer for sale through stock exchange’.

Disinvestment in a listed public sector company can either be done by follow on public offer or the recently introduced offer for sale through stock exchange or auction method. FPO is a time-consuming and expensive method, while auction method is very economical and can be completed in a very short period. ONGC was the first company where auction method was used for disinvestment.

During the current fiscal, the Government decided to offload its stake in Rashtriya Ispat Nigam and Steel Authority of India. But, the volatile market situation forced the Government not to implement its decision. Still, the Government is hopeful of not just meeting the target, but even exceeding it.

SAIL is also trading firm at Rs 82.3, a gain of 1.23 per cent.

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