Reports suggest that government may offload its 10 percent stake in National Mineral Development Corporation ( NMDC) before December 15.
The NMDC issue may be followed by Oil India (OIL) and then National Thermal Power Corporation (NTPC), reports suggest.
Besides, government also plans to offload some of its stake in MMTC and Nalco by the end of March 2013. With only four months in hand, five issues are expected to come back-to-back. There will be lot of fund-raising through public offers by the government and private companies in the next four months. So, bunching will be an issue but the market can absorb public offers if there are attractive discounts, said KK Mittal, head, PMS, Globe Capital.
The issues of OIL and NTPC may hit the market in January. The groundwork for the OIL issue is already completed with merchant bankers already in place. The issue is expected to fetch around Rs 2,500 crore. Another 9.5 per cent disinvestment in NTPC is expected to bring in Rs 12,000 crore.
The government is aiming to earn Rs 30,000 crore through disinvestment of its part equity. Besides, improvement in market conditions has raised hopes of it even crossing the target. Besides the five, the Cabinet Committee on Economic Affairs has also approved disinvestment in BHEL, Rashtriya Ispat Nigam and SAIL.
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