Nearly Rs 23,600 raised via disinvestment this year so far, govt says

Ministry of Finance on Tuesday said that so far in the current financial year, the government has realised Rs 23528.73 crore, which include Rs 21,432.38 crore through minority stake sale in 14 Central Public Sector Enterprises (CPSEs) and Rs 2096.35 crore through strategic disinvestment.  

For the current fiscal, the government's disinvestment target was estimated at Rs 56,500 crore comprising Rs 36,000 crore from disinvestment of CPSEs and Rs 20,500 crore from strategic disinvestment.

The Ministry in a release said that the total realization of Rs 21,432.38 crore, by end-November 2016 through CPSEs’ disinvestment receipts, constitutes around 59.53% of the Budgeted Target of Rs 36,000 crore (CPSEs’ disinvestment).

Here are the details of amount received by the government via disinvestment:

1. National Hydroelectric Power Corporation Limited Offer for sale

CCEA in its meeting held on September 10, 2014 approved 11.36% disinvestment in NHPC out of government shareholding of 85.96%, through an OFS. The OFS took place on April 27- 28, 2016. The Government realised an amount of Rs 2,716.55 crore.

2. Manganese Ore (India) Limited buyback

The Alternative Mechanism in its meeting held on June 7, 2016 approved participation of government in buyback of shares by MOIL. The MOIL buyback offer opened on September 19, 2016 and closed on September 30, 2016. The government realised an amount of Rs 793.87 crore.

3. National Mineral Development Corporation buyback

The Alternative Mechanism in its meeting held on June 7, 2016 approved participation of government in buyback of shares by NMDC. The NMDC buyback offer opened on September 19, 2016 and closed on September 30, 2016. The Government realised an amount of Rs 7,519.15 crore.

4. BEL Buyback 

The Alternative Mechanism in its meeting held on 05.08.2016 approved participation of Government in Buyback of shares by BEL. The BEL buyback offer opened on 06.10.2016 and closed on 21.10.2016. The Government realised an amount of Rs.1,802.60 crore.
 
5. NTPC Employee OFS

NTPC Employee OFS was opened on June 27, 2016 and closed on July 7, 2016. The Government realised an amount of Rs 203.78 crore.
 
6. NHPC Employee OFS 

NHPC Employee OFS was opened on November 4, 2016 and closed on November 11, 2016. The Government realised an amount of Rs 21.27 crore.
 
7. DCIL Employee OFS 

DCIL Employee OFS was opened on October 31, 2016 and closed on November 15, 2016. The Government realised an amount of Rs 0.93 crore.

8. NALCO OFS 

CCEA in its meeting held on February 19, 2015 approved disinvestment of 10% paid up equity of National Aluminium Co. Ltd (NALCO) out of government’s shareholding of 80.93% through OFS. 
 
9. Buyback of shares by NALCO 

Board of NALCO in its meeting held on May 25, 2016 recommended buyback of fully paid equity shares not exceeding 64,43,09,628 (of face value Rs. 5 each) at price of Rs 44/- per share. Government also participated in said buyback. On this account, government received an amount of Rs 2831.71 crore and its share holding came down to 74.57%, from 80.93% prior to buyback.
 
10. HCL OFS 

CCEA in its meeting held on May 13, 2015 had approved disinvestment of 15% paid-up equity of Hindustan Copper Ltd (HCL) out of government’s shareholding of 89.95% through OFS.  

In first tranche, disinvestment of 7% paid-up equity capital of HCL through OFS method was held on September 29-30, 2016.  A total number of 6,47,65,260 equity shares were offered for sale at floor price of Rs 62/- per share.  The issue was over-subscribed and government received an amount of Rs 399.93 crores as disinvestment proceeds from the said transaction.
 
11. Buyback of shares by CIL 

The Board of Coal India Limited in its meeting held on  July 11, 2016 recommended buyback of fully paid equity shares not exceeding 10,89,55,223 ( Face value Rs. 10) at Rs. 335/- per equity share.  GoI participated in said buyback.  On this account, government  received an amount of Rs 2638.24 crore.  Post buyback, the government's shareholding in CIL slightly increased to 79.78% from 79.65% prior to buyback.
 
12. CONCOR Employees OFS 

Government has received an amount of Rs 9.34 crore on account of transfer of shares to the employees of CONCOR held in September, 2016 post OFS of the company.
 
13. IOCL   Employees OFS 

Government has received an amount of Rs 262 crore on account of transfer of shares to the employees of IOCL held in May, 2016 post OFS of the Company.

14. NBCC OFS 

OFS of 15% Government of India shareholding in NBCC was launched on October 20, and completed on October 21, 2016. The OFS's sale proceeds was Rs 2201.14 crore.
 
15. Disinvestment of SUUTI holdings 

1,48,23,702 shares of Larsen & Toubro Ltd (1.62% of the equity capital of the company) was sold out of SUUTI's strategic shareholding by bulk trades on November 4, 2016. Government received an amount of Rs 2096,34,65,993/- from this sale. Strategic holding of SUUTI comprise shares of Axis Bank, ITC Ltd. and L&T shares.