SAIL FPO in Jan, ONGC in March, IOC deferred

Drawing a roadmap for disinvestment during the last quarter of this financial year, the government today said it would dilute its stake in SAIL in January, followed by Power Finance Corporation (PFC) and oil major ONGC in March.

“The new year would start with the stake sale of SAIL in January. We would do (disinvestment) in ONGC in March. PFC would also come this fiscal,” a finance ministry official said.

The official said the follow-on public offer of Indian Oil Corporation (IOC) has been deferred to next financial year.

IOC had last month appointed six merchant bankers for the sale of 10 per cent equity shares in the FPO that its chairman B M Bansal said was planned for third or fourth week of January.

“We can’t have disinvestment of two large companies (ONGC and IOC) from the same sector simultaneously,” the official added.

The government has also decided to defer the disinvestment of Rs 4,000-crore Hindustan Copper FPO till next financial year. Its disinvestment was earlier expected to take place this month.

“We have not taken any decision on Hindustan Copper disinvestment now. It would come next fiscal,” the official said, adding the government plans to divest its stake in Rashtriya Ispat Nigam Limited also in the next financial year.

The Cabinet, on December 1, approved the sale of government’s five per cent stake in ONGC, the nation’s highest profit-earning firm, to raise up to Rs 13,000 crore.