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Disinvestment flow set to pick up in fourth quarter

Source : BUSINESS_STANDARD
Last Updated: Fri, Dec 07, 2012 07:40 hrs

pThe government is likely to sell stakes in five more companies in the current financial year with the National Mineral Development Corporation NMDC seeing disinvestment before December 15ppAfter 10 per cent disinvestment in NMDC there is likely to be a lull for some time because of the holiday season &ldquoTill early-January foreign institutional investors will not be available so the remaining issues are likely to happen after the first week of 2013&rdquo said a senior officialppThe NMDC issue is likely to be followed by Oil India Limited OIL and then National Thermal Power Corporation NTPC Other offers will include MMTC and Nalco With only four months in hand five issues are expected to come back-to-back &ldquoThere will be lot of fund-raising through public offers by the government and private companies in the next four months So bunching will be an issue but the market can absorb public offers if there are attractive discounts&rdquo said KK Mittal head PMS Globe Capitalbr  table cellpadding2 width300 border0 tbody tr td bgcolor929373font faceTahoma colorffffff size3strongIN THE PIPELINEstrongfonttd tr tr td bgcoloreeeeda ul lifont faceTahoma size2National Mineral Development Corporationfontli lifont faceTahoma size2Oil India Limitedfontli lifont faceTahoma size2National Thermal Power Corporationfontli lifont faceTahoma size2Metals & Minerals Trading Corporationfontli lifont faceTahoma size2National Aluminium Co Ltdfontli ul td tr tbodytableppThe issues of OIL and NTPC Ltd are likely to hit the market in January The groundwork for the OIL issue is already completed with merchant bankers already in place The issue is expected to fetch around Rs 2500 crore Another 95 per cent disinvestment in NTPC is expected to bring in Rs 12000 croreppThe government is aiming to earn Rs 30000 crore through disinvestment of its part equity Besides improvement in market conditions has raised hopes of it even crossing the target Besides the five the Cabinet Committee on Economic Affairs has also approved disinvestment in BHEL Rashtriya Ispat Nigam Ltd and SAILppThe government raised Rs 800 crore a fortnight back through disinvestment of 558 per cent equity in Hindustan Copper Limited through the offer for sale OFS route at Rs 155 a share Another tranche of disinvestment of five per cent equity is expected to happen this yearppBesides Hindustan Copper the government disinvested 10 per cent in National Buildings Construction Corporation earlier this year bringing in Rs 125 crore to its kitty For the last two years the government has been unable to meet its annual disinvestment target of Rs 40000 crore While it got only Rs 13894 crore in 2011-12 it had raised Rs 22144 crore in 2010-11ppWith Hindustan Copper the government is trying out the new route of OFS through stock exchanges It has reduced the time period for sale of equity derisking the market swings to some extentp


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