1. Govt misses FY16 disinvestment target

Govt misses FY16 disinvestment target

Garners Rs 19,514.07 cr through divestment against the Budgetary target of Rs 69,500 cr

By: | Mumbai | Updated: March 30, 2016 1:33 AM

The government has missed its disinvestment target for FY16 by more than half as it postponed majority of the proposed stake sales due to weak stock markets. The government managed to garner Rs 19,514.07 crore through the divestment during the financial year against the Budgetary target of Rs 69,500 crore, data from the department of disinvestment showed. Out of the total target, Rs 41,000 crore were to come through minority stake sales and Rs 28,500 crore from strategic sales. The benchmark Sensex has lost 10.8% in FY16 so far with shares of PSUs declining in the range of 5-20% during the same period, Bloomberg data showed.

The government had planned to trim its stake in close to 20 PSUs based on the market conditions.In fact, Sebi had tweaked the Offer For Sale (OFs) norms to check the usual fall in stock prices before an OFS by reducing the time gap between the announcement and actual sale to one day instead of two days earlier. The move was aimed at avoiding short selling of PSU shares.

The OFS in Indian Oil Corporation(IOC) was the biggest divestment offering during the financial year. The government had trimmed its stake by 10% in the oil marketing company to raise Rs 9,369 crore.State owned insurer Life Insurance Corporation (LIC) had bailed out the OFS as the offering received lukewarm response from the investors.

As per the stock exchange filing made by IOC, LIC had bought 86% of the total shares tendered by the government.

The exchequer raised `5,014.55 crore by paring 5% of its stake in NTPC. LIC was the key subscriber even in this OFS
as it purchased 60% of the shares on offer.

Market participants believe that the government has taken the right decision by not selling its stake when valuations of the PSUs have dipped significantly. “It is unfair to blame the government for the developments that have taken place in external markets. I think it has done the right thing — to wait for the markets to recover so that it can garner more money through the stake sales,” said an investment banker with a leading domestic brokerage.

This is the sixth consecutive year that the exchequer has missed the disinvestment target. During FY15, the government mopped up `24,277 crore against the target of `36,925 crore, official data showed.


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  1. Nitin Varia
    Mar 30, 2016 at 1:37 am
    .''INDIAN OIL CORPORATION poised FOR 20% UPSIDE ON 30/3/16. SINGLE DAY SPRING ACTION. INDIAN REFINERS NEVER HAD SUCH A GOLDEN YEAR OF PROFITS AS 15/16 IN ITS HISTORY. Petroleum Minister scouting Iran supplies during visit 5/4 and 6/4. On 90 days credit. And PM Modiji's securing crude supplies from Saudi during visit on 10/4/16 As reported by Bloomberg Reliance is lucky this year resulting from falling crude. So is Mody Government. 1. HISTORICALLY HIGHEST PROFIT IN 15/16 due to falling crude during the period. 2. Highest Inventory Gain in 4th QUARTER of 15/16 . 3. Highest refining margin the best among peers in India. No.1. Beating Reliance. IOC GRM will top 14$ whereas Reliance shall be at $ 11. 4. Plastic Products based on Naphta so to register highest HISTORICAL profits as reported by FITCH. Naptha have been lowest since 15 years during the year . 5. RBI to reduce interest by 50/basis points as it augurs well with IOC being large borrower. 6. RUPEE strengthening due to good budjet so best foreign exchange gains. As IOC gets oil on 600 days credit. Rupee appreciated from 69 to 66 giving wind fall PROFIT to IOC . 7. Budget 16/17 focuses on Rural growth and IOC have maximum presence in this area which translates into continued increase in marketing margins over and above refining . 8. IOC was on buying spree of crude installations world wide and especially Russia when crude was below 30. So got a bargain deals that translates into best business decision . 9. Pradip Refinery the best in India to add to profitability as it can process any kind of crude. 10 . IOC historically announces bonus every five years. And now it is to be announced during April 2016 when the annual results announced or may be after 5 state election results. 11. Bear cartel in bear SQUEEZE. The punters maniting open interest after market closes. 12. Normally open interest in IOC 85 lacs. But as of today it is 33 for March and 21 lacs for April. Meaning it is safe ride till you cross 85 lacs without risk. 13. There can be no better stock than IOC. HPCL is over valued and so is BPCL. 14. Exports of Naptha at most lucrative prices adding to profits. Reported on Bloomberg. 15. Direct Transfer of subsidy halts leakage that is net gain. Marketing Margins to OMC highest in its history. The beneficiary of Adhar DBT to IOC is maximum as IOC were providing 60% of subsidized LPG Kerosene out of the three OMC . 16. Highest Advance tax paid in its history for the fourth quarter. 17. Re- Rating of OMC done . 18. Supply side being strengthened by visit of our PM to Saudis. On 30/3/16 IOC to Continue upward trajectory. Enjoy the joy ride care free.''

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