The government has invited applications from merchant bankers to assist in carrying out a proposed disinvestment of Housing and Urban Development Corporation (Hudco).
"The government of India is considering to divest 10 per cent paid-up equity capital of Hudco out of its shareholding of 100 per cent in the domestic market through initial public offering of shares by promoters through stock exchanges," a public notice said. Proposals for the Securities and Exchange Board of India-registered merchant bankers are invited to act as Book Running Lead Managers and to assist and advise government in the process of IPO, it said.
The last date for submission of bid for BRLMs is August 3, it added.
Last month, the Cabinet cleared proposal for 10 per cent disinvestment in Hudco which is under administrative control of the Urban Development Ministry.
"The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has given its approval for disinvestment of 10 per cent paid-up equity of Hudco," an official statement had said.
The CCEA also approved allowing a price discount of up to 5 per cent on the issue price to retail investors and HUDCO employees.
As on March 2015, HUDCO's paid-up equity capital was Rs 2,001.90 crore and the net worth is of Rs 7,800 crore.
The government has set a disinvestment target of Rs 56,500 crore for the current fiscal. Of this, Rs 36,000 crore is to come from minority stake sale in PSUs and Rs 20,500 crore from strategic sale.
The government has already kick-started the disinvestment programme for the current fiscal with 11.36 per cent stake sale in NHPC, which fetched Rs 2,700 crore.
It has lined up as many as 15 PSUs, including Coal India, NMDC, MOIL, MMTC, National Fertilisers, NALCO and Bharat Electronics, for divestment in 2016-17.
During 2015-16, the government managed to notch up Rs 25,312 crore through disinvestment, less than half the target of Rs 69,500 crore.
It had raised around Rs 24,500 crore in 2014-15 by selling stake in public companies, about Rs 16,000 crore in 2013-14 and Rs 23,960 crore in 2012-13. It had raised around Rs 14,000 crore in 2011-12 and over Rs 22,100 crore in 2010-11.