Government lines up seven public issues in 6 months

The government has listed plans to sell stake in another seven public sector companies including Shipping Corporation, Steel Authority of India Ltd, Indian Oil and Oil and Natural Gas Corporation (ONGC) during the current financial year.

In the agenda papers for the Economic Editors’ Conference, the finance ministry had said a follow-on issue for the sale of 10 per cent stake in Power Grid Corporation, and fresh issue of an equal number of shares, was planned next month.

It also said that the Manganese Ore India Ltd initial public offer was planned for next month, through which the Centre will disinvest 10 per cent stake, while the Madhya Pradesh and Maharashtra governments will sell five per cent each.

For December, the government has lined up 10 per cent stake sale in Hindustan Copper through a follow-on issue, which will be followed by disinvestment in SAIL in February.

But before that the disinvestment department plans to sell government stake in Indian Oil in January though a government approval was awaited. In case of ONGC, the document did not specify the date but mentioned that a follow-on issue was planned during the current financial year.

It also said the department was holding discussions with the administrative ministries for disinvestment of stake in MMTC, Rashtriya Ispat Nigam Ltd and Power Finance Corporation.

The government is on course to beat its target of Rs 40,000 crore from disinvestment in public sector companies.

Finance Minister Pranab Mukherjee, however, indicated at the conference that the government would adopt a flexible approach. “My intention is not to saturate the market. The government will step in as and when there is appetite. We will not do anything to distort the market or have a situation where the shares are underpriced,” the minister said at the conference.