62525More than 80 flights of AI express cancelled

Representative Image

The initial offer of Life Insurance Corporation of India (LIC) is, perhaps, the most-expected IPO now. The government, however, plans to complete disinvestment in at least three public sector units (PSUs) before shifting focus to the mega initial offer of the insurance behemoth. Tuhin K Pandey, Secretary at Department of Investment and Public Asset Management, said that the IPO which is expected to happen in the last quarter of FY22 will be the largest one in India.  The Cabinet Committee on Economic Affairs had given its in-principle approval to list LIC in early July. As per industry estimates, 10% stake sale in LIC could bring in around Rs 1-1.5 lakh crore.

Disinvestment in three PSUs

A finance ministry official told The Economic Times that the government has plans to complete the disinvestment in Mishra Dhatu Nigam, National Fertilisers and Rashtriya Chemical & Fertilizers.

According to per the official, divestment in at least three PSUs is expected within the coming quarter through offer for sale (OFS) route. The official said that all the necessary approvals required are already in place.

It will divest 20% stake out of the 74% it holds in National Fertilizers. In Rashtriya Chemical & Fertilisers, the government holds 75% stake and will sell 10%, while in Mishra Dhatu Nigam, a defence PSU, it holds 74% stake and will sell 10%.

Earning through minority stake sales

In the current financial year, the government has earned over Rs 7,646 crore via minority stake sale. It earned Rs 3,651 from National Mineral Development Corporation via OFS and Rs 3,994 crore from the sale of SUUTI stake in Axis Bank. In addition, the government a few days ago had sold 8% stake in Housing and Urban Development Corporation (HUDCO) via the OFS for Rs 720 crore. With this sale, the government’s stake in HUDCO has come down to 81.81%.