10 public sector units lined up for IPO next fiscal, says FinMin
Sector-specific ETFs to help meet disinvestment target
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.