NEW DELHI: The government has invited bids from merchant bankers for managing the listing process of two PSUs North Eastern Electric Power Corporation Ltd (NEEPCO) and MSTC.
The government currently holds 89.85 per cent stake in trading firm MSTC and the balance 10.15 per cent is held by the members of the Steel Furnace Association of India and Ispat Industries Ltd.
NEEPCO, which meets about 35 per cent of the energy requirement of the North-East region, is wholly-owned by the government.
The listing would entail disinvestment of a portion of paid-up equity of NEEPCO and MSTC through a prospectus based Initial Public Offer (IPO) in the domestic market, the Department of Investment and Public Asset Management (DIPAM) said while inviting bids from merchant bankers.
"A part of the public offering will be reserved for employees of the company.The eligible employees and retail investors will be offered shares at a discount on the issue price," the DIPAM said.
The government will appoint up to four merchant bankers for NEEPCO and two for MSTC and bids have to be submitted by May 3, 2018.
In July last year, the DIPAM had floated the Request for Proposal (RFP) for appointing merchant bankers for listing of NEEPCO and MSTC.
However, the appointment of bankers was put on hold.
NEEPCO had posted a profit after tax for the 2016-17 fiscal of Rs 240.46 crore.
As on March 31, 2017, its net worth stood at Rs 5874.50 crore.
Under the administrative control of steel ministry, MSTC's profit after tax for the fiscal 2017-18 stood at Rs 72.09 crore as on March 31, 2018, and net worth of Rs 560.28 crore.
The government plans to raise Rs 80,000 crore this fiscal through PSU disinvestment, as against over Rs 1 lakh crore in the previous fiscal.