Shares of PSU majors BPCL, Shipping Corporation surged on Tuesday morning, after reports that a group of secretaries have approved a mega disinvestment plan in the firms.
Shares of PSU majors BPCL, Shipping Corporation surged on Tuesday morning, after reports that a group of secretaries have approved a mega disinvestment plan in the firms. BPCL share price gained more than 8.7% to hit the day’s high at Rs 511.50 on BSE, while shares of Shipping Corporation of India jumped more than 8% to hit the day’s high at Rs 49.30 on BSE. The group of secretaries have approved entire stake sale in BPCL and Shipping Corporation, while NEEPCO and THDC will be acquired by other public sector units (PSUs), CNBC TV18 reported sources as saying.
The development comes even as the government looks to raise a record amount from disinvestment in the financial year. The Narendra Modi-led government proposes to raise a whopping Rs 1.05 lakh crore from disinvestment in the current financial year, Rs 20,000 crore more as compared to the previous fiscal year. The current stake of the government stands at 53.29% in BPCL, 54.79% in Container Corp, 63% in Shipping Corp, 75% in THDC and 100% in NEEPCO. Notably, the government has also reportedly cleared a sale of 30% equity of Container Corp of India (Concor) from the government holding. In order to complete the stake sale of BPCL, the government will now have to seek the approval of the two houses for its sale since the company was formed under an act of Parliament.
Post the cabinet clearance, the government will have to undertake the valuation exercise for each of the companies, appoint consultants and merchant bankers and also invite bids for the strategic stake sales of BPCL, Container Corporation, Shipping Corporation, while NTPC and NHPC will be involved in the process of merging THDC and NEEPCO respectively with their own businesses, along with of course, the critical task of valuation of the unlisted companies, according to a report by CNBC TV18.