Govt seeks to empanel merchant bankers, legal advisors for share sales

Appointment will be for two years, extendable for one year; contenders can quote a fee as low as Re 1, must submit bids by October 20

The government is looking to empanel merchant bankers and legal advisors for divestment of its shareholding through sale of shares in stock markets.

The Department of Investment and Public Asset Management (DIPAM) has invited bids from merchant bankers and legal advisors who would be appointed for a period of two years, extendable for one year, to assist the government in selling its shareholding in companies through an offer for sale (OFS).

Merchant bankers will have to advise the government on the timing and the modalities of the OFS, and structuring the transaction in conformity with the existing framework of Securities and Exchange Board of India (Sebi). They will also be required to conduct market surveys, domestic and international road shows to generate interest among prospective investors, and arrange meetings with the key investors.

Legal advisors will be required to draft, review and finalize the notice for filing with stock exchanges, draft responses to queries received from Sebi, stock exchanges and depositories until the completion of all activities relating to OFS.

Merchant bankers and legal advisers can quote a fee as low as one rupee. They will be required to submit their bids for acting as the intermediary by October 20.

In the current financial year, the government has been able to garner Rs 9,110 crore by selling shares of Axis Bank, NMDC, Hindustan Copper and Housing and Urban Development Corporation