The government on Tuesday approved disinvestment of 5 per cent of its stake in power equipment maker
BHEL , that could fetch it about Rs 4,320 crore.
"The government will disinvest five per cent equity in the company, out of its share holding of 67.72 per cent through book building process in the domestic market," an official release said.
Disinvestment of stake in
power equipment major BHEL was approved by the Cabinet Committee on Economic Affairs (CCEA), which met on Tuesday.
Based on today's market capitalisation of Rs 86,532 crore at close on the Bombay Stock Exchange, five per cent stake in the company is worth over Rs 4,326 crore (nearly $1 billion).
A price discount of 5 per cent would be given for retail investors, as part of efforts to encourage greater public ownership in Central Public Sector Enterprises, the statement said.
Ten per cent of the shares to be offered for sale through further public offer shall be reserved for the employees, which would also given a price discount of five per cent.
The company has a paid up equity capital of Rs 489.52 crore.
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