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Govt to sell up to 25% stake in four defence PSUs via IPO

Govt to sell up to 25% stake in four defence PSUs via IPO

The government is planning to list four of its defence PSUs by selling up to 25 per cent stake in each of them through an initial public offering (IPO).

The Department of Investment and Public Asset Management (DIPAM) has through an advertisement invited bids from registrars for disinvestment of up to 25 per cent stake each in Bharat Dynamics, Garden Reach Shipbuilders & Engineers, Mazagon Dock Shipbuilders and Mishra Dhatu Nigam Ltd.
The bids have to be submitted by August 18 to DIPAM, which handles disinvestment of public sector enterprises, the tender said.
The Cabinet in April cleared the disinvestment of these 4 PSUs under the defence ministry, and thereafter DIPAM invited bids from merchant bankers and legal advisors for managing the stake sales. The government has already raised over Rs 8,800 crore through disinvestment in six companies, including selling stake in L&T through Specified Undertaking of Unit Trust of India (SUUTI), and one share buyback.
The government has budgeted to raise Rs 72,500 crore through stake sale in PSUs. This includes Rs 46,500 crore from minority stake sale, Rs 15,000 crore from strategic disinvestment and Rs 11,000 crore from listing of PSU insurance companies.
Miniratna PSU Bharat Dynamics (BDL) was established in 1970 and is a manufacturer of guided missiles and allied defence equipment. The authorised share capital is Rs 125 crore and the paid-up equity capital is Rs 122.19 crore as on January 31, 2017. BDL earned a profit-after-tax (PAT) of Rs 563.24 crore in 2015-16 and has a net worth of Rs 1,652.23 crore.

Agencies

Agencies

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