The government will sell 5% stake in state-owned financing company Rural Electrification Corporation...
The government will sell 5% stake in state-owned financing company Rural Electrification Corporation (REC) on Wednesday to mark the beginning to record disinvestment plan laid-out for fiscal 2016, the company announced in a stock exchange notification. The Centre aims to raise R1,600-1,650 crore through the stake sale.
The 4.93 crore share transaction will take place via offer for sale (OFS) and have 20% of the issue reserved for retail investors. In addition, the government is offering a 5% discount to retail individual — any individual whose bids for shares of total value do not exceed R2 lakh.
IL&FS Broking Services, JM Financial, Morgan Stanley are the financial advisors on the deal.
Source say the government wants to begin the disinvestment process in a phased manner instead of rushing towards the fag-end of the year.
The new strategy is to keep a pool of companies ready for disinvestment and launch the deal when the timing is opportune.
The government is also looking to sell stake in Power Finance Corporation (PFC), Bharat Heavy Electricals (BHEL), NMDC, Naclo, MOIL, Dredging Corporation, as well as through big ticket transactions like ONGC.
The government aims to raise R69,500 crore by selling stake in state-owned companies, in addition to selling residual stake held by SUUTI in certain private sector companies and strategic sale of Hindustan Zinc and Vedanata.