Glass half full: Disinvestment kitty swells to Rs 37,866 crore

The government has crossed the half-way mark towards achieving the 2017-18 disinvestment target. Following the conclusion of New India Assurance’s initial public offering (IPO) last week, the government’s divestment kitty has swelled to Rs 37,866 crore, 52 per cent of the targeted Rs 72,500 crore for the current financial year. IPOs have accounted for the bulk of the disinvestment proceeds this year. This is in contrast to two previous financial years, when the government had heavily relied on share buybacks.

Apart from New India, the government has launched the maiden offers of GIC Re, Hudco and Cochin Shipyard this year. Besides, it has done share sales in NTPC and strategic divestment in Larsen & Toubro (L&T), in which it holds stake through Specified Undertaking of the Unit Trust.

The government now has a shot at meeting the divestment target for the first time ever. Next, the Centre will launch a Bharat-22 Exchange Traded Fund (ETF), through which it will divest holdings in 22 companies. The ETF could mop-up between Rs 8,000 crore and Rs 12,000 crore, depending on investors’ response. 

The government could net another Rs 30,000 crore from a proposed merger between ONGC and HPCL. Under the deal, ONGC will acquire the government’s stake in HPCL, which is valued at around Rs 35,000 crore.