Government begins process to sell stake in three firms
By Express News Service | Published: 05th January 2018 02:55 AM |
NEW DELHI: The Union government has begun the process of divesting its stakes in three state-run firms, announcing on Thursday that it was seeking bids from transaction advisors for the sale of Dredging Corporation of India (DCI), HLL LifeCare Ltd and Indian Medicines Pharmaceutical Corporation Limited (IMPCL).
The government currently holds 73.47 per cent in DCI, and holds 100 per cent equity in the other two firms. Calculating value on the net worth of the three firms, the government is seeking to sell equity cumulatively worth Rs 1,690.41 crore.
The net worth of DCI as on September 30, 2017, was Rs 1,547.57 crore. The net worth of IMPCL and HLL Lifecare stood at Rs 66.45 crore and Rs 487.93 crore, respectively, as of the same date. IMPCL, under the Ministry of AYUSH, is a joint venture of the Government of India (97.61 per cent) and the Uttarakhand state government (2.39 per cent).
According to the tender invite, entities willing to act as transaction advisors for these companies would have to submit their bids by January 29.
The government’s sale of these three firms is part of its ongoing process of divestment, which is expected to raise it substantial capital. The government had budgeted to raise Rs 72,500 crore this fiscal through disinvestment.