No plan to disinvest Bhel stake right now: Praful
18 April 2013 7:48 AM IST
Union Heavy Industries and Public Enterprises Minister Praful Patel said on Wednesday that the government has no immediate plan to divest any of its stake in power equipment public sector undertaking (PSU) Bhel. 'As of now, there is no plan to disinvest in Bhel,' he told reporters on the sidelines of the fourth Clean Energy Ministerial meet here.
'Last year there was a proposal (to bring the follow-on public offer) of Bhel, but we did not go for it because of power sector outlook,' he added. In July 2011 the government had appointed four merchant bankers — Morgan Stanley, DSP Merrill Lynch (Bank of America), ICICI Securities and Kotak Mahindra Capital for Bhel’s follow-on public offer.
The government, which holds 67.72 per cent stake in the PSU, had approved a disinvestment of 5 per cent shareholding. However, in April 2012, Bhel had withdrawn the Draft Red Herring Prospectus (DRHP) for the follow-on offer filed with the Securities and Exchange Board of India (Sebi), following an instruction from the Finance Ministry.
The government is planning to raise Rs 40,000 crore by way of PSU stake sales in the current fiscal and has lined up a host of companies, including Indian Oil Corporation Ltd (IOCL) , Engineers India Ltd (EIL), Bhel and Coal India Ltd (CIL) for divesting minority stake.
In the last fiscal (2012- 3), the government has raised Rs 23,920 crore through disinvestment. The Bhel scrip closed at Rs 182.80, up 0.25 per cent from its previous close, on the BSE on Wednesday. On Scooters India Ltd (SIL), Patel said, ‘There is already a revival plan for SIL and we will go by it. But if there is an opportunity where we may find a joint venture partner, we will look at it.' He said, however, that as market conditions are not favourable for a joint partner at the moment, it is better to revive the company.
In January, the Cabinet approved a Rs 200-crore revival package for ailing SIL. Incorporated in 1972, SIL initially manufactured scooters under the brand name Vijai Super for the domestic market and Lambretta for overseas markets. Later it ventured into the three-wheeler segment with the Vikram brand. In 1997, it stopped two-wheeler production and is now engaged in the manufacture and marketing of only three-wheelers.
'Last year there was a proposal (to bring the follow-on public offer) of Bhel, but we did not go for it because of power sector outlook,' he added. In July 2011 the government had appointed four merchant bankers — Morgan Stanley, DSP Merrill Lynch (Bank of America), ICICI Securities and Kotak Mahindra Capital for Bhel’s follow-on public offer.
The government, which holds 67.72 per cent stake in the PSU, had approved a disinvestment of 5 per cent shareholding. However, in April 2012, Bhel had withdrawn the Draft Red Herring Prospectus (DRHP) for the follow-on offer filed with the Securities and Exchange Board of India (Sebi), following an instruction from the Finance Ministry.
The government is planning to raise Rs 40,000 crore by way of PSU stake sales in the current fiscal and has lined up a host of companies, including Indian Oil Corporation Ltd (IOCL) , Engineers India Ltd (EIL), Bhel and Coal India Ltd (CIL) for divesting minority stake.
In the last fiscal (2012- 3), the government has raised Rs 23,920 crore through disinvestment. The Bhel scrip closed at Rs 182.80, up 0.25 per cent from its previous close, on the BSE on Wednesday. On Scooters India Ltd (SIL), Patel said, ‘There is already a revival plan for SIL and we will go by it. But if there is an opportunity where we may find a joint venture partner, we will look at it.' He said, however, that as market conditions are not favourable for a joint partner at the moment, it is better to revive the company.
In January, the Cabinet approved a Rs 200-crore revival package for ailing SIL. Incorporated in 1972, SIL initially manufactured scooters under the brand name Vijai Super for the domestic market and Lambretta for overseas markets. Later it ventured into the three-wheeler segment with the Vikram brand. In 1997, it stopped two-wheeler production and is now engaged in the manufacture and marketing of only three-wheelers.
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