The authorities is planning to promote as much as 10 per cent stake in defence PSU Mishra Dhatu Nigam Ltd (MIDHANI) in the present fiscal ending March, an official mentioned. The firm received listed on inventory exchanges in April 2018 and the federal government had raised Rs 438 crore by promoting 26 per cent stake by means of IPO.
The official mentioned that with the opening of house sector to overseas funding and bringing defence sector underneath automated route for 74 per cent overseas direct funding (FDI), MIDHANI shares are anticipated to draw buyers.
MIDHANI manufactures particular metal and tremendous alloys for use in defence, nuclear and house sectors.
“We are looking at up to 10 per cent stake dilution via offer for sale,” the official mentioned.
Shares of MIDHANI closed at Rs 193.50 apiece on the BSE on Friday.
At the present market worth, the federal government can elevate about Rs 360 crore by promoting 10 per cent stake in the corporate. The official additional mentioned that with large ticket divestment plans hit by the COVID-19 pandemic, the federal government is readying public sector firms for minority stake sale in the remaining months of present fiscal.
So far this fiscal, the federal government has raised Rs 6,138 crore by promoting minority stake in Hindustan Aeronautics Ltd and Bharat Dynamics Ltd by means of offer for sale to date this yr. The authorities additionally divested 15.2 per cent in Mazagon Dock Shipbuilders Ltd by means of an preliminary public providing.
The authorities has set a Rs 2.1 lakh crore disinvestment goal in present fiscal. This consists of Rs 1.20 lakh crore by means of CPSE stake dilution and Rs 90,000 crore by means of stake sale in monetary establishments — greater than 4 occasions what it raised final monetary yr.