The government is planning to sell up to 10% stake in Mazagon Dock Shipbuilders Ltd. A proposal to this effect may soon be put in place, said a government official.
The government holds 84.83% in the firm. At current valuations, the sale of a 10% stake may fetch the government around ₹570 crore.
“The stake sale could be done through the offer for sale (OFS) route. Discussions are on between the administrative ministry and disinvestment department,” the official said.
A final decision on the quantum of stake to be sold would be decided by the alternative mechanism, which will have on board both the finance as well as defence ministers.
“We expect the transaction to be completed within this year, depending on market conditions,” the official added.
Mazagon Dock shares closed 3.8% lower at ₹285.70 on the BSE.
The company listed in 2020, and the government had sold a 15.17% stake for around ₹440 crore. It was the first public sector enterprise to be listed in 2020.
The government has pegged the disinvestment target for the ongoing fiscal year (FY23) at ₹65,000 crore. So far, it has raised about ₹23,575 crore through disinvestment in FY23. Of this, ₹20,560 crore was from the LIC IPO, and ₹3,000 crore came from the sale of a 1.5% stake in state-run explorer Oil and Natural Gas Corporation.
Last month, the Union Cabinet approved the sale of the government’s residual stake of 29.5% in Hindustan Zinc (HZL), which may help raise around ₹38,000 crore. The government has called off the strategic sale for BPCL. The strategic sale of Pawan Hans and CEL Ltd are also being reviewed.
Source: Economic Times