Mumbai: Government will sell a 11.36 per cent stake in state-controlled hydropower producer NHPC on Wednesday to raise Rs. 2,800 crore ($420 million), the NewsRise news agency reported, kicking off the government’s privatisation programme for this year.
The government wants to raise Rs. 56,500 crore from the sale of stakes in state-owned enterprises in the 2016/17 financial year. That is 19 per cent lower than last year’s target, which the government failed to hit.
The floor price for the NHPC stake sale is 21.75 rupees per share, NewsRise quoted a government official as saying to reporters in New Delhi. The offer is at a 6 per cent discount to the company’s closing price of Rs. 23.05 on Tuesday.
The government is also seeking bids from merchant bankers and brokers to manage the sale of a 10 per cent stake in state energy company Oil India, a finance ministry statement said.