The Centre may list Hindustan Aeronautics (HAL), RITES and Indian Railway Finance Corporation (IRFC) to raise about Rs 5,200 crore this fiscal, even as disinvestment via the initial public offering route has touched a record high this year. The government is likely to mop up another Rs 1,500 crore through the buyback programme of some PSUs including a railways firm, an official told FE. The Centre has garnered Rs 92,500 crore so far in FY18 and needs another Rs 7,500 crore to meet the revised target of Rs 1 lakh crore for the year. These IPOs, buybacks and an offer for sale (OFS) in a PSU would suffice to meet the revised target this year, the official said. Listing of HAL which has been hanging fire since 2011 could finally go through next month. The government will likely sell a 10% stake HAL to raise around 2,000 crore. Pending the IPO, the unlisted firm’s buyback of shares fetched the Centre Rs 921.5 crore in disinvestment revenues in FY18 and Rs 4,284.37 crore in FY16. HAL had net worth of Rs 12,537 crore as on March 31, 2017.
The IPOs of profitable rail PSUs — Indian Railway Finance Corporation (IRFC) and RITES — are on track to hit the market next month, officials said. The size of the government stake sale in these units would be announced closer to the date of the IPO, but will be 10-15%. Up to 15% stake sale in these two rail units might fetch the Centre up to Rs 3,160 crore (IRFC – Rs 2,700 crore and RITES – Rs 460 crore). The DIPAM has approval for diluting up to 25% in these rail PSUs, which are wholly owned by the Centre. Read More…
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