Centre to sell up to 25% stake in four defence companies via IPO

The government has invited proposals for the IPO by 3 pm on August 18

The Centre is considering selling up to 25 per cent of its stake in four state-owned companies under the control of the department of defence through an initial public offering (IPO), a public notice showed on Friday.

The Department of Investment and Public Asset Management (DIPAM) has invited proposals for the IPO by 3 pm on August 18. The government is looking to sell stakes in Mazagon Dock, Bharat Dynamics, Garden Reach Shipbuilders & Engineers and Mishra Dhatu Nigam. The bids have to be submitted by August 18 to DIPAM, which handles disinvestment of public sector enterprises, the tender said.

Prime Minister Narendra Modi's government has been divesting its stake in several public and private companies to meet its Rs 72,500 ($11.38 billion) divestment target during the year to March 2018.

The Cabinet in April cleared the disinvestment of these four PSUs under the defence ministry, and thereafter DIPAM invited bids from merchant bankers and legal advisors for managing the stake sales. Miniratna PSU BDL was established in 1970. It manufactures guided missiles and allied defence equipment. It’s authorised share capital was Rs 125 crore and paid-up equity capital was Rs 122.19 crore as on January 31, 2017.