Government Plans to Raise Rs 12,000 crore through Share Buyback in PSUs

Government Plans to Raise Rs 12,000 crore through Share Buyback in PSUs

New Delhi: It seems that the government is in full swing to implement its fund-raising plans. As per the information given by the sources, the government is working on to raise around Rs 12,000 crores through share buybacks in almost 8 PSUs in the current financial year.

According to the information available, IOC, NTPC, ONGC and Oil India will be the PSUs which will buy back some shares from the government.

The sources also revealed that apart from this, the government might also raise Rs 10,000 crores through the sale of stake in Coal India and this sale of stake might be through block deals.

Notably, the roadshows have already been initiated by the government this week itself in regards to the sale of minority stake in Coal India. It is been said that the government is in discussion with pension funds and foreign investors to pick up stake in the coal mining major.

The disinvestment target set by the government for the year 2018-19 is of Rs 80,000 crores.

In the meantime, after elections in the next fiscal year, the government might also put out the second expression of interest (EoI) for Air India. The sources informed that this has been taken forward till the elections due to the political uncertainty as the upcoming elections might discourage the buyers’ interest in the stressed airline.

It was reported in various media platforms that the government was preparing its disinvestment plan in September-March. There were also reports published that the government might offload 3 per cent stake in NTPC and 15 per cent stake in MMTC.

Apart from, NTPC and MMTC, there were also reports that 5 per cent stake in BHEL and Coal India and 8 per cent stake in Hindustan Copper and NMDC might also be offloaded by the government to raise funds.