Govt seeks merchant bankers for stake sale in IOC,Bhel & Nalco

Government today sought merchant bankers to assist it in sale of its stake in three blue-chip firms--IOC, BHEL and NALCO-- to help meet disinvestment target of Rs 43,425 crore set for this fiscal.
The stake sale in these companies would fetch about Rs 13,000 crore to the exchequer.
The government intends to sell its 10 per cent stake each in Indian Oil Corporation (IOC) and National Aluminium Company Limited (NALCO), while it will put on block its 5 per equity shares in Bharat Heavy Electrical Ltd (BHEL).
IOC, a Maharatna public sector undertaking under the administrative control of Ministry of Petroleum & Natural Gas, would fetch Rs 8,100 crore to the government at the current market price.

Disinvestment of government stake in Bhel would be worth about Rs 3,500 crore, while NALCO is likely to fetch about Rs 1,230 crore.
Government owns 68.57 per cent in IOC, 63.06 in Bhel and 80.93 per cent in NALCO.

In IOC, government would be selling 24.27 crore shares and 25.77 crore in aluminium major NALCO, while it plans to sell 12.23 crore shares in power equipment major BHEL through offer for sale (OFS) route.
IOC shares were up 0.44 per cent on BSE and closed at Rs 331.8 a piece. At the same time, Bhel shares closed at Rs 283.7 a piece, up 0.67 per cent on BSE.

NALCO shares last traded at Rs 47.70 a piece on BSE, down 0.52 per cent from yesterday close on BSE.
Employees would get 5 per cent discount for buying shares in IOC, BHEL and NALCO.
Yesterday, the Department of Disinvestment had floated public notice seeking expression of interest from reputed merchant bankers for divesting 10 per cent stake in iron ore miner NMDC that could fetch about Rs 5,500 crore to the exchequer.
Recently Finance Minister Arun Jaitley had said that major disinvestment would pick up in coming month.
"I am not going to give any indication but major disinvestment in the coming months prior to March 31 is going to take place," he had said.

In 2014-15, the government has sold 5 per cent stake in steel major SAIL and raked in Rs 1,700 crore. It is racing against time to meet its disinvestment target of Rs 43,425 crore for this fiscal. Blue-chip companies like ONGC, NHPC and Coal India has been lined up for disinvestment.
In addition, it is also targeting Rs 15,000 crore from sale of residual stakes in private companies in this fiscal.