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REC, PFC divestment roadshows likely to start Jan 12

The roadshow for the divestment in PFC  and REC  is likely to start on January 12 and continue till January 16, sources tell CNBC-TV18’s Sapna Das.

The government plans to divest 5 percent in both these companies in FY15 and hopes to garner around Rs 3,000-3,400 crore via stake sale. The roadshows will be conducted in Hong Kong, Singapore, London, New York, Boston, Mumbai and Chennai.

However, sources indicate that NHPC  stake sale and RINL, HAL listings are unlikely in FY15. There has been uncertainty too over the residual stake sale in HZL  and BALCO during the current fiscal year as Finance Ministry is planning to send it back to Mines Ministry. But the government is hopeful of divesting its stake in Coal India  before February.

The government has proposed to offload 10 percent stake in Coal India in FY15. According to sources, it may reserve 10 percent stock for Coal India employees in OFS. Sebi rules allow promoters to reserve up to 20 percent for retail investors.

The other mechanism that the Finance Minister may look at to offload more stake would be through CPSE ETF , launched last year.

The Central Public Sector Enterprise (CPSE) ETF is the innovative disinvestment strategy that helped government mop up Rs 3,000 crore via disinvestment of 10 PSUs. The 10 stocks that the basket includes are – ONGC, GAIL India, Coal India, Indian Oil, Oil India, PFC, REC, Container Corp, Engineers India and Bharat Electronics.

The government stake sale via CPSE ETF is currently below 1 percent, however, it can sell up to 3 percent share in each of the 10 companies through the route without seeking a fresh Cabinet nod. The government may garner around Rs 5000 crore to Rs 6000 crore through more stake sale in CPSE ETF.

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