Divestment is back: NHPC, OIL first | business | Hindustan Times
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Divestment is back: NHPC, OIL first

business Updated: Jul 08, 2009 20:59 IST
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In what will mark the revival of the disinvestment process, the IPOs of the two state-owned companies — NHPC and Oil India Ltd (OIL) are expected to hit the markets latest by September. In the piggyback process, the Centre’s stakes will come down by 10 per cent in each through the public issues.

The government is also planning to divest equity in Coal India Limited (CIL).

“NHPC’s IPO will come in August; the company has already started the roadshows for the same,” power secretary H S Brahma said on Wednesday.

“CIL has been conferred Navaratna status in 2008 with the condition that it will be listed (in stock markets) within three years. Accordingly, steps are being taken to convert CIL first into a public limited company and thereafter for listing and or disinvestment,” coal minister Sriprakash Jaiswal told Lok Sabha in a written reply.

Jaiswal said the government has not “assessed the exact amount of money that is likely to be raised as a result of disinvetment.”

Power Ministry sources said that another state-owned hydroelectricity producer--Satluj Jal Vidyut Nigam Ltd (SJVNL) will also be due for a stake sale.

NHPC has planned an IPO for 10 per cent for its stake and 5 per cent would be divested in the first tranche. The 15 per cent equity sale with a face value of Rs 10 would help the company garner Rs 1,680 crore making it the biggest IPO in recent months.

Similarly the government expects to raise about Rs 1,300 crore by divesting equity in OIL.