 "Cabinet likely to ratify 4.66% stake sale in BHEL")
The Cabinet is likely to ratify tomorrow the decision to sell 4.66% stake in power equipment maker BHEL through a block deal.
The proposal for post-facto approval for BHEL disinvestment is on the agenda of tomorrow's meeting of the Cabinet Committee on Economic Affairs (CCEA), sources said.
The Finance Ministry in March had sold 4.66% stake in the state-owned company to Life Insurance Corporation (LIC) for about Rs 1,889 crore.
Following the block deal, the government stake in BHEL came down to 63.06%, from 67.72%.
The Empowered Group of Ministers, headed by Finance Minister P Chidambaram, had in February decided on the timing and mode of disinvestment in BHEL.
However, the CCEA approval was pending for the stake sale.
In August 2011, the Cabinet had cleared the sale of 5% stake in BHEL through a follow-on public offer (FPO). However, market conditions led to a delay in the issue and the company in April 2012 withdrew the draft prospectus filed with market regulator SEBI.
The proposal for post-facto approval for BHEL disinvestment is on the agenda of tomorrow's meeting of the Cabinet Committee on Economic Affairs (CCEA), sources said.
The Finance Ministry in March had sold 4.66% stake in the state-owned company to Life Insurance Corporation (LIC) for about Rs 1,889 crore.
Also Read
LIC purchased 11.41 crore shares in BHEL at a price of Rs 165.55 apiece through a block deal on the BSE.
Following the block deal, the government stake in BHEL came down to 63.06%, from 67.72%.
The Empowered Group of Ministers, headed by Finance Minister P Chidambaram, had in February decided on the timing and mode of disinvestment in BHEL.
However, the CCEA approval was pending for the stake sale.
In August 2011, the Cabinet had cleared the sale of 5% stake in BHEL through a follow-on public offer (FPO). However, market conditions led to a delay in the issue and the company in April 2012 withdrew the draft prospectus filed with market regulator SEBI.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%