10 pub­lic sec­tor units lined up for IPO next fis­cal, says FinMin

Sec­tor-spe­cific ETFs to help meet dis­in­vest­ment tar­get

The Hindu - - BUSINESS - Press Trust of In­dia

The Fi­nance Min­istry on Satur­day said that 10 cen­tral pub­lic sec­tor en­ter­prises (CPSEs), in­clud­ing THDCIL, RailTel and TCIL, have been lined up for ini­tial pub­lic of­fer­ing (IPO).

Plans are afoot to launch sec­tor-spe­cific ex­change­traded funds (ETFs) to meet the am­bi­tious ₹90,000crore dis­in­vest­ment tar­get for 2019-20.

Be­sides, the min­istry plans to march ahead with the strate­gic dis­in­vest­ment of a host of CPSEs and mon­e­tise non-core as­sets of sta­te­owned com­pa­nies, said Atanu Chakraborty, Sec­re­tary in the De­part­ment of In­vest­ment and Pub­lic As­set Man­age­ment (DIPAM).

“We have about 10 IPOs which are lined up al­ready. Then there are lot of com­pa­nies which have to meet their min­i­mum pub­lic share­hold­ing tar­get. We will also bring new theme-based ETFs. Then, there would be strate­gic dis­in­vest­ments and post elec­tions we would top it up sharply and as­set mon­eti­sa­tion frame­work will see the light of the day next year,” Mr. Chakraborty told PTI in an in­ter­view.

The In­terim Bud­get has set a tar­get of ₹90,000 crore to be mopped up from CPSE dis­in­vest­ment in 2019-20, higher than ₹80,000 crore in the cur­rent fis­cal. In the 10 months of the cur­rent fis­cal so far, ₹36,000 crore has been raised through stake sale in CPSEs, as well as tranches of ETFs and share buy­backs. The govern­ment has an up­hill task of mop­ping up an­other ₹44,000 crore from dis­in­vest­ment by March-end.

As­set mon­eti­sa­tion frame­work will see the light of day next year Atanu Chakraborty, Sec­re­tary, DIPAM

Share buy­back of­fer­ings

“All trans­ac­tions are in place to meet the ₹80,000 crore tar­get set for cur­rent fis­cal,” Mr. Chakraborty said. The govern­ment is ex­pected to raise around ₹12,000 crore from share buy­back of­fer­ings by CPSEs, in­clud­ing ONGC, Coal In­dia and IOC.

Fur­ther, the strate­gic dis­in­vest­ment of Pawan Hans is also ex­pected to be com­pleted by March 2019.

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