Friday, March 29, 2024
HomeUncategorizedHSBC, StanChart, Edelweiss vie for managing PFC, REC stake sale

HSBC, StanChart, Edelweiss vie for managing PFC, REC stake sale

- Advertisement -

About a dozen merchant bankers, including the likes of JM Financial, HSBC, StanChart, have queued up to manage the 5 per cent stake sale of PFC and REC, which could together fetch over Rs. 2,700 crore to the exchequer.

As many as 12 merchant bankers have bid for managing the stake sale of Rural Electrification Corp (REC) and 10 bankers for that of Power Finance Corp (PFC), the Department of Disinvestment (DoD) said.

The bankers would be making presentations before the DoD on September 26.

The government would sell stake in these two companies through the Offer for Sale (OFS) route.

The government holds 72.80 per cent stake in PFC and 65.64 per cent in REC.

The government is also considering to allot shares to PFC and REC employees at a 5 per cent discount to the issue price up to a maximum of 10 per cent of the OFS size. The employees will be eligible to apply for shares up to Rs two lakh only.

At the current market price of around Rs. 236 apiece, a sale of 5 per cent stake or 6.6 crore PFC shares would fetch the exchequer over Rs. 1,500 crore.

Besides, sale of 5 per cent stake or 4.94 crore REC shares could fetch over Rs. 1,200 crore to the exchequer.

The combined revenue to the exchequer from PFC and REC stake sale could be over Rs. 2,500 crore.

The government estimates to collect Rs. 43,425 crore through disinvestment in PSUs. It has already initiated process for stake sale in RINL, ONGC, NHPC and SAIL.

- Advertisement -
- Advertisement -
- Advertisement -

Latest

Must Read

- Advertisement -

Related News