Specified Undertaking of Unit Trust of India (SUUTI) has invited merchant bankers to manage sale of its shareholding in various listed and non-listed companies.
SUUTI may hire up to six merchant bankers for stake sale in various companies, it said in a revised Request for Proposal (RFP) document.
The government holds stakes in 51 companies through SUUTI, which was formed in 2003 as an offshoot of erstwhile UTI.
Earlier in July, SUUTI had floated the RFP. The revised RFP has diluted the conflict of interest clause for bankers managing SUUTI stake sale and expanded the panel of bankers.
“SUUTI seeks to appoint a panel of up to six merchant bankers/advisers/selling brokers for attending, assisting and advising on sale of SUUTI shareholding in different companies; for a period of three years,” the RFP said.
The earlier RFP was for only for hiring three merchant bankers.
“Merchant bankers are required to put in a single RFP and a consolidated financial bid for sale of the entire shareholding of SUUTI,” the RFP said.
Of the 51 companies in which SUUTI holds stake, eight are unlisted entities — NSDL, STCI Finance, Over The Counter Exchange, Stock Holding Corporation of India, UTI-IAS Ltd and UTI Infrastructure Technology Services and NSDL e-Governance Infrastructure.
As a criterion, the RFP said SUUTI will rank the appointed merchant bankers and may use only up to three merchant bankers for a particular transaction.
“However in case a merchant banker is found to be in conflict at the time of selection for a transaction, then the merchant banker in the next order of ranking will be given the opportunity to execute the transaction,” according to the RFP document.
Any Merchant Banker who is in conflict in respect of a particular transaction shall be considered for a subsequent transaction on cessation of the conflict situation, in accordance with the original ranking it said.
“This process would be followed for each transaction separately,” SUUTI said.