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FinMin maintains Rs 40,000 cr disinvestment target

business Updated: Oct 21, 2010 20:20 IST

The Finance Ministry on Thursday exuded confidence of meeting target of raising Rs 40,000 crore through disinvestment this fiscal, but did not raise the projected numbers despite buoyed response to Coal India's initial public offering, the country's biggest issue so far.

"We are working towards the Rs 40,000 crore disinvestment target and we are confident of achieving it," Disinvestment Secretary Sumit Bose told PTI when asked if the Finance Ministry is revising its target upwards for the current financial year on account of huge response to Coal India IPO.

Speculations are rife that the ministry has raised the target of fund raising through disinvestment for this fiscal. The government has proposed to mop up Rs 40,000 crore by offloading stakes partly in PSUs in 2010-11.

Bose further said he is "very happy" with the Coal India IPO response, particularly great enthusiasm shown by retail investors. "We are happy with the response shown by investors of all segments, particularly retail for the Coal India IPO."

Coal India's blockbuster offering received an overwhelming response from investors and was over-subscribed 15.20 times, as per the latest information. The issue closed on Thursday.

The state-owned CIL issue is the country's biggest share sale so far, with the government looking at garnering about Rs 15,000 crore by disinvesting 10 per cent stake in the world's largest coal producer. The issue is priced in the range of Rs 225 to Rs 245 a share.

Aiming to raise Rs 40,000 crore through disinvestment this fiscal, the government has mopped up over Rs 1,000 crore by divesting stake in Satluj Jal Vidyut Nigam, and around Rs 1,000 crore through Engineers India FPO.

The follow-on public offer of Power Grid Corp is next in line and the issue opens on November 9. Besides, the government will divest its stake in Manganese Ore India Limited, Hindustan Copper and Shipping Corporation of India in the current fiscal.

The disinvestment in SAIL, ONGC and IOC is expected in the last quarter of the current fiscal, Bose added.

Last fiscal, the government had raised Rs 25,000 crore through stake sale in Oil India, NMDC, REC and NTPC.