BHEL Disinvestment Likely In April; May Fetch Rs 3,200 Crores

18/03/2015 5:14 PM IST | Updated 15/07/2016 8:25 AM IST
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INDIA - JANUARY 28: Bharat Heavy Electrical Limited logo displayed on an AC/DC locomotive train engine used by Central Railways, on the outskirts of Mumbai on Sunday, Jan. 28, 2007. Bharat Heavy Electricals Ltd., India's largest power equipment maker, plans to purchase companies in the country and overseas to add capacity and grow, Chairman and Managing Director Ashok K. Puri said. The company's shares surged. (Photo by Abhijit Bhatlekar/Bloomberg via Getty Images)

NEW DELHI — The government has firmed up a list of PSUs to be divested next fiscal, starting with BHEL in April, in a bid to meet the Rs 41,000 crore stake sale target for 2015-16.

Official sources said the Disinvestment Department has completed overseas roadshows for BHEL stake sale in London, Singapore and Hong Kong.

At the current market price of Rs 260.75 a share, sale of over 12.23 crore shares in BHEL would fetch around Rs 3,200 crore to the exchequer.

Other companies which are on the block include NMDC, NALCO and IOC, with 10 per cent stake sale proposal each.

Besides, 5 per cent stake sale in ONGC, PFC and REC is also on cards.

Sources said the Disinvestment Department feels shares of BHEL have been holding steady and the time may be right for going ahead with the stake sale.

The government holds 63.06 per cent in BHEL.

In March 2014, the government had sold 4.66 per cent stake in BHEL to LIC through a block deal for around Rs 1,800 crore.

According to sources, the process is on for disinvestment in other PSUs. Specifically for 5 per cent stake sale in ONGC, the government is working out a subsidy sharing roadmap to give clarity to investors.

For 2015-16 fiscal beginning April, the government has budgeted to collect Rs 69,500 crore through PSU disinvestment.

This includes Rs 41,000 crore to be garnered through minority stake sale and another Rs 28,500 crore through strategic sale in both loss and profit making PSUs.

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