Dis­in­vest­ment in ndmc, Coal in­dia, moil, oth­ers takes rev­enue to rs 21,401 Cr in FY17 so Far

Resource Digest - - NEWS IN BRIEF RESOURCE DIGEST -

The Cen­tre has raised Rs 15,585 crore by sell­ing back a por­tion of its shares in NMDC, Coal In­dia, MOIL, Bharat Elec­tron­ics and Nalco, tak­ing the dis­in­vest­ment rev­enue to Rs 21,401 crore so far in FY17.

The state-run alu­minium maker was the first com­pany to com­plete a buy­back trans­ac­tion that fetched Rs 2,831 crore.

NMDC buy­back gen­er­ated Rs 7,519 crore, the high­est amount through this route so far. Coal In­dia buy­back gen­er­ated Rs 2,638 crore, Rs 1,803 crore from Bharat Elec­tron­ics and Rs 794 crore from MOIL.

While share­hold­ers can pro­por­tion­ately ten­der shares in the buy­backs, the gov­ern­ment ten­dered shares for the en­tire ticket size of the buy­back to en­sure that it gets al­lo­cated the max­i­mum in case other share­hold­ers don’t sub­scribe to the of­fer.

On May 27, the Cen­tre had is­sued a cap­i­tal re­struc­tur­ing or­der man­dat­ing ev­ery cen­tral PSU with net worth of above Rs 2,000 crore and cash & bank bal­ance of over Rs 1,000 crore to ex­er­cise the op­tion to buy back a por­tion of their shares with ef­fect from FY17.

The move, aimed at nudg­ing the PSUS to utilise their idle cash to re­ward share­hold­ers, is ex­pected to be a money spin­ner for the Cen­tre in the cur­rent fis­cal.

Be­sides buy­backs, the gov­ern­ment has raised an­other Rs 5,815 crore so far in FY17 via small stake sales in NHPC, Hin­dus­tan Cop­per, NBCC as well as from sale of small por­tions in In­dian Oil, NTPC and En­gi­neers In­dia to their em­ploy­ees.

The Bud­get es­ti­mate for dis­in­vest­ment com­prises Rs 36,000 crore from PSUS and Rs 20,500 crore from strate­gic dis­in­vest­ment. The gov­ern­ment is try­ing to mo­bilise more rev­enue from small stakes sales in PSUS, in­clud­ing through buy­backs as not much is ex­pected to be re­alised from strate­gic sales this year.

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