The government, which is way short-meeting the disinvestment target of Rs 80,000 crore for this year, is set to ask state-owned power sector financier Power Finance Corporation (PFC) to buy its entire stake in REC at a premium of 20 per cent.
With just over a month remaining for FY19 to end, government is working at break-neck pace to complete disinvestment in companies that it had identified earlier. As part of this, it intends to complete PFC-REC deal in next few weeks that will help it mobilize close to Rs 16,000 crore as disinvestment proceeds.
The deal involves PFC buying out government’s entire 52.85 per cent stake in REC. At current share price of price about Rs 122 on BSE, the government’s stake sale will fetch close to Rs 12,750 crore. Read More