New Delhi: As many as 8 public sector companies, including Hindustan Aeronautics and RITES, will hit the capital markets next fiscal as the government intends to unlock the real value of PSUs and bring in greater accountability.
Department of Investment and Public Asset Management (DIPAM) Secretary Neeraj Gupta said these initial public offerings (IPO) will be done in a "staggered manner" depending upon the size of the issuance.
"Eight companies are at different stages of preparation (for an IPO) and will enter the market at an appropriate time," Gupta told PTI.
Of these, HAL has already secured market regulator Sebi nod for floating an IPO. The government plans to sell 10 per cent stake in the defence PSU.
Besides, four PSUs — RITES, IREDA, Bharat Dynamics and Midhani — have filed their draft papers with Sebi and are awaiting its go-ahead to launch public issue.
Through RITES IPO, the government plans to sell 12 per cent stake to raise an estimated Rs 600 crore.
The government will sell 13.90 crore shares in Indian Renewable Energy Development Agency (IREDA), while 12 per cent and 25 per cent would be sold in defence PSUs Bharat Dynamics and Mishra Dhatu Nigam (MIDHANI), respectively.
In 2018-19 fiscal, the government has budgeted to raise Rs 80,000 crore through PSU disinvestment, which includes a strategic sale.
"The government will adopt a comprehensive approach in going about its disinvestment mandate," Gupta said.
In the current fiscal, which ends in March, the government has already raised over Rs 23,600 crore by way of IPOs in four companies.
As much as Rs 11,372 crore has been raised from General Insurance Corp, Rs 9,600 crore from New India Assurance Co, Rs 1,442 crore from Cochin Shipyard and Rs 1,200 crore from Housing and Urban Development Corp (Hudco).
(This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI)