NEW DELHI: In order to achieve the disinvestment target this year, the government is planning to sell stakes in its construction arms HUDCO and NBCC in the coming quarters to raise about Rs 6,000 crore.
“The ministry has got a go-ahead from the Cabinet for selling stocks in NBCC India Limited and Housing and Urban Development Corporation (HUDCO). We will initiate the process next month. At present, the process of shortlisting merchant bankers is on and will soon float Request for Proposals (RFP) for the same,” said a senior official from the Finance Ministry.
HUDCO had listed itself on the stock exchanges in May last year. Its IPO had seen a huge demand from investors and was subscribed nearly 80 times. In the given market conditions, the government expects to raise a total Rs 6,000 crore via sale of stakes of both the entities, along with National Thermal Power Corporation (NTPC).
“The market conditions are good. Overall, we expect to raise about Rs 6,000 crore by selling 10 per cent stake in HUDCO, 10 per cent in NBCC and three per cent in NTPC. However, it is not decided whether it will be done in a phased manner or at one go. It will depend on the market direction and the advisory by the merchant banker,” the official said.
According to him, HUDCO and NBCC stake sales are expected to happen in the October-December quarter. Earlier, the Cabinet had already approved 10 per cent stake sale in power producer NTPC, of which seven per cent was sold in August last year. The stake sale fetched Rs 9,100 crore.
At present, the government holds 89.81 per cent stake in HUDCO, 73.69 percent stake in NBCC and 61.71 per cent stake in NTPC. The Centre has set a target of raising Rs 80,000 crore through disinvestment this fiscal. So far, it has raised Rs 9,000 crore.