State-owned Tehri Hydro Development Corporation, National Seeds Corporation, Telecommunications Consultants India Limited (TCIL) and FCI Aravali Gypsum and Minerals India Ltd are among the first batch of firms to tap the market with their initial public offerings (IPOs) later this year.
“These firms are among the six entities which have been granted cabinet approval and could hit the market in October as part of the divestment strategy. They are expected to garner over Rs 2,000 crore to the exchequer,” officials at the department of investment and public asset management (Dipam) said.
The timing and the amount of the stake to be offered, however, would depend on the market conditions, officials said, adding the minimum would be a 10 per cent stake sale.
The other firms to get the cabinet’s “in-principle” approval for initial public offering are RailTel Corporation India and Water & Power Consultancy Services (India). The cabinet has also cleared the follow-on offers (FPO) of Kudremukh Iron Ore Company Ltd and Ircon. Besides, the listing of IRCTC, IRFC and Neepco, approved earlier, is also on the agenda.
The ministry has come out with a proposal seeking lead managers for divestment in Tehri Hydro through IPO. It has sought merchant bankers and selling brokers for divestment in Ircon International through offer for sale (OFS). The government plans to divest 16 per cent of its 89.18 per cent stake through the OFS process.
At present, Tehri Hydro’s authorised capital is Rs 4,000 crore and the paid-up capital is Rs 3,654.88 crore as on March 31, 2019. The share capital is held by the Centre and Uttar Pradesh government in the ratio of 75:25. The profit after tax for 2017-18 was Rs 778.7 crore.
The miniratna category-1 status firm has an installed capacity of 1513MW and a portfolio of 13 projects totalling an installed capacity of 5539MW under various stages of implementation and development.
National Seeds Corporation Ltd is a miniratna company wholly owned by the Government of India under the aegis of the ministry of agriculture and farmer’s welfare. TCIL, a prime engineering and consultancy company, is a wholly owned PSU under the administrative control of the department of telecommunications (DoT).
FCI Aravali was incorporated under the Companies Act, 1956, as a PSU in 2003 after being hived off from the Jodhpur Mining Organisation of the Fertilizer Corporation of India Ltd.
