Disinvestment: Centre to create pool of bankers, legal advisers for OFS

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October 01, 2021 3:30 AM

The government will empanel merchant bankers and legal advisers for a period of two years, extendable by one year, DIPAM said.

While strategic disinvestment would be the key mode of disinvestment for the Centre, OFS will help the government reduce its stake gradually in many state-run entities.While strategic disinvestment would be the key mode of disinvestment for the Centre, OFS will help the government reduce its stake gradually in many state-run entities.

The department of investment and public asset management (DIPAM) on Thursday floated a ‘request for proposal’ inviting qualified firms to be part of a pool of merchant bankers and legal advisers to help the government in disinvestment of stakes in companies through offer for sale (OFS).

The government will empanel merchant bankers and legal advisers for a period of two years, extendable by one year, DIPAM said.

Interested firms can submit their proposals latest by October 20 to work as merchant bankers-cum-selling brokers. Legal advisory firms would also have to submit their proposals by October 20.

While strategic disinvestment would be the key mode of disinvestment for the Centre, OFS will help the government reduce its stake gradually in many state-run entities.

Merchant bankers, who can bid for any of the four categories created based on the potential size of OFS, would advise the government on the timing, regulatory norms and the modalities of the stake sales, among others.

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