You are here: Home » Economy & Policy » News
Business Standard

Centre to sell up to 25% stake in four defence companies via IPO

The government has invited proposals for the IPO by 3 pm on August 18


Agencies  |  Mumbai/New Delhi 

Photo: Shutterstock

The Centre is considering selling up to 25 per cent of its stake in four state-owned companies under the control of the department of defence through an initial public offering (IPO), a public notice showed on Friday.

The Department of Investment and Public Asset Management (DIPAM) has invited proposals for the by 3 pm on August 18. The government is looking to sell stakes in Mazagon Dock, Bharat Dynamics, Garden Reach Shipbuilders & Engineers and Mishra Dhatu Nigam. The bids have to be submitted by August 18 to DIPAM, which handles disinvestment of public sector enterprises, the tender said.

Prime Minister Narendra Modi's government has been divesting its stake in several public and private companies to meet its Rs 72,500 ($11.38 billion) divestment target during the year to March 2018.

The Cabinet in April cleared the disinvestment of these four PSUs under the defence ministry, and thereafter DIPAM invited bids from merchant bankers and legal advisors for managing the stake sales. Miniratna PSU BDL was established in 1970. It manufactures guided missiles and allied defence equipment. It’s authorised share capital was Rs 125 crore and paid-up equity capital was Rs 122.19 crore as on January 31, 2017.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, August 05 2017. 01:29 IST