The government has advertised for book running lead managers to manage the initial public offerings of North Eastern Electric Power Corporation (NEEPCO) and Metal Scrap Trading Corporation (MSTC), the Department of Investment and Public Asset Management said in separate statements on its website. The government holds a 100% stake in NEEPCO and an 89.85% in MSTC. It plans to divest 25% stake in both the companies.
NEEPCO operates five hydro, three thermal and one solar power stations with combined installed capacity of 1,251 MW. The company posted a standalone net profit of Rs 372.55 crore for the year ended March 2016, against a profit of Rs 318.54 in the previous financial year. At the end of FY16, its standalone debt stood at Rs 5,552 crore.
MSTC procures raw material for industries and provides e-commerce solutions. The company posted a standalone net profit of Rs 59.88 crore for the year ended March 2016, against Rs 90.99 crore in the previous financial year. In May 2017, the government raised Rs 1,224 crore through the initial public offering of Housing and Urban Development Corporation.
The government hopes to raise Rs 72,500 crore in FY18 through a combination of minority stake sales, strategic disinvestment as well as via listing of state-owned insurance companies. The government raised Rs 46,246.58 crore in FY17 through buybacks, OFS, stake sales through central public sector enterprises exchange traded fund (CPSE ETF), and by divesting its strategic holdings in Specified Undertaking of Unit Trust of India (SUUTI).