After public sector company Coal India's IPO, Power Grid will hit the equity markets with its follow-on offer in November this year, said the Disinvestment Secretary, Mr Sumit Bose.
And more PSU offerings are in the pipeline. “SAIL's FPO is in the process of due diligence. The Government plans to sell 5 per cent stake in ONGC and 10 per cent in IOC. We are yet to appoint a banker for IOC's public offer. We hope to complete the process (for all the three PSUs) in the first quarter of the next calendar year,” he said.
The size of the IOC public offer will be “very big” as the Government will divest 10 per cent of its stake in the company; there will also be a fresh issue of shares amounting to 10 per cent stake, said Mr Bose.
Aiming to raise Rs 40,000 crore through disinvestment this fiscal, the Government has mopped up a little more than Rs 1,000 crore through Satluj Jal Vidyut Nigam's initial public offering and around Rs 1,000 crore from the Engineers India FPO.
Mr Bose said Shipping Corporation of India, Power Grid, Hindustan Copper and Manganese Ore India are expected to make public offers in the current fiscal.
The IPO of Coal India will open on October 18. The Government is diluting 10 per cent stake to raise up to Rs 15,400 crore, making it the biggest IPO in India. The Government owns 100 per cent stake in the company. All the proceeds raised from the issue would go to the Government.
Taking into account the 5 per cent discount for retail investors, the company will raise between Rs 13,950 crore and Rs 15,154 crore, the price band being Rs 225-245.
Coal India's IPO will eclipse that of Reliance Power whose Rs 11,000-crore IPO has been till date the biggest issue made in the country.
Retail investors have been allotted 35 per cent of the shares (20 crore shares) and the employees of the company one per cent.
Coal India has decided not to have an anchor book for the issue.
Source: Business Line
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