The Indian Express (Delhi Edition)
DIPAM seeks bids from investment bankers
To divest Centre’s stake in RVNL & RITES Ltd via IPO route
STAKE SALE IN TWO RAILWAY FIRMS
KEEPING IN line with its plan for time-boundlistingofpublicsector undertakings (PSUS), the Department of Investment and Public Asset Management (Dipam)hassoughtbidsfrominvestment bankers for divesting the Centre’sstakeintworailwayfirms — Rail Vikas Nigam Ltd (RVNL), andritesltd—throughtheinitial publicoffering(ipo)route.thedepartment received approval from the Cabinet Committee on Economic Affairs for listing of these companies on Wednesday.
According to the request for proposal document, DIPAM has sought bids from merchant bankers latest by May 11, for appointment of book running lead managers (BRLM), who would oversee the process of listing of these companies. “The government will select and appoint up to four merchant bankers with requisite experience in public offerings, who together will form a team and would be called book running lead managers. The BRLMS, in consultation with the government, will form a syndicate as required under the SEBI guidelines/regulations. The government will have the option of appointing additional syndicate member(s), if considered necessary,” the bid document noted.
Apart from the two aforementioned companies, the Cabinet approval was also granted to listing of nine other state-owned firms, including six for which the process to appoint merchant bankers and legal advisers has already begun. The three remaining companies are also railway PSUS — IRCON International Ltd, Indian Railway Finance Corporation Ltd (IRFC), and Indian Railway Catering and Tourism Corporation Ltd (IRCTC).
According to an official statement announcing the Cabinet’s decision, listing of profitable PSUS on the stock exchanges “also triggers multilayered oversight mechanism, which not only enhances shareholders’ value but also promotes corporate governance norms in such companies”. In the Union Budget 201718, the Centre set a target of Rs 72,500 crore through disinvestment of its shareholding in public sector companies, 60 per cent higher from the estimate of Rs 45,500 crore in FY17.
STAKE IN TOBACCO FIRMS