Timing for the
Bharat Heavy Electricals (BHEL) follow-on public offer (FPO) will depend on the market conditions and the FPO may even be deferred till there is a volatility in the stock exchanges.
"The timing will have to be seen, depending on market conditions. If markets are where they are today, certainly we can ask the Disinvestment Department to defer it," Heavy Industries and Public Enterprises Minister Praful Patel said.
ONGC FPO could open on September 20 or 27: Govt The Cabinet Committee on Economic Affairs (CCEA)
on Tuesday approved five per cent FPO in the power-equipment major.
The Department of Disinvestment (DoD) has already appointed four merchant bankers for disinvestment of BHEL, in which the government holds 67.72 per cent stake.
On the basis of the stock price on Tuesday, the Navratna PSU is valued at Rs 86,532 crore and the government may rake in about Rs 4,300 crore by offloading five per cent of its stake through the FPO.
Market volatility delaying SAIL offer, says Govt Patel said the disinvestment cannot be a "distressed sale. It must realise a good value".
The finance ministry has set up an ambitious disinvestment target of Rs 40,000 crore for the current financial year.
While the government has approved disinvestment in Oil and Natural Gad Corp (ONGC), Steel Authority of India (SAIL), HCL and NBCC, it could mop up only Rs 1,162 crore through five per cent stake sale in Power Finance Corporation in 2011-12.
Last year, the government collected Rs 22,763 crore through sale of equity in public sector enterprises.
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