The Cabinet Committee on Economic Affairs (CCEA) on 13 May 2015 gave its approval for 5 percent disinvestment in National Thermal Power Corporation Limited (NTPC) and 10 percent disinvestment in Indian Oil Corporation (IOC).
Disinvestment in these two Maharatna companies will fetch government over 13000 crore rupees at current market price. The proposed share sale of 5 percent in NTPC will fetch Union government 5600 crore rupees while that of 10 percent in IOC will bring in 8100 crore rupees.
Currently, Union Government holds 74.96 percent stake in NTPC and 68.57 percent stake in IOC. After the sale, the Government will be left with a 58.57 percent stake in Indian Oil and 69.96 percent in NTPC.
Disinvestment in both these companies will be executed through the Offer for Sale (OFS) route, through stock exchanges. Retail investors (those bidding for up to 2 lakh) will be required to deposit the full amount at the time of the bid, while high net-worth and institutional investors need not do so.
These approvals are part of Union Government’s budgeted target to raise 41000 crore rupees through disinvestment in CPSUs for the current financial year 2015-16.
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When: 13 May 2015