Spread the love

So far this year, the Centre has garnered about Rs 32,300 crore in disinvestment receipts, including Rs 17,500 crore via CPSE ETF which concluded on Friday.

The Union Cabinet may consider a proposal on Thursday for sale of the Centre’s 52.63% stake in Rural Electrification Corporation (REC) to Power Finance Corporation (PFC) for about Rs 15,000 crore, at a hefty premium of 36% over the current market price.
Though, the earlier plan was to sell government stake in REC to PFC, it has been reversed as the power ministry flagged some concerns.

Revenue from sale of government stake in companies in FY19 may be within the striking distance of the annual target of Rs 80,000 crore if the proposed REC stake sale is concluded before March 31.
So far this year, the Centre has garnered about Rs 32,300 crore in disinvestment receipts, including Rs 17,500 crore via CPSE ETF which concluded on Friday.

At the share price of `105.10 a share (BSE) on Wednesday, sale of 52.63% stake in REC is worth around Rs 11,000 crore. For HPCL stake sale to ONGC last year, reference valuation was at a 14% premium to last closing price, which fetched the Centre a whopping Rs 36,915 crore.

The REC-PFC deal is in line with the government’s policy of creating public sector behemoths by consolidating firms based on commonalities of functions to benefit from economy of scale, global competitiveness and access to cheaper capital.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

© copyright — The Financial Express


Spread the love

LEAVE A REPLY

Please enter your comment!
Please enter your name here