Delay in strategic sale of wind goose,
(SCI), and the scale-down public offer of Bharat Petroleum Corporation Limited () and Life Insurance Corporation of India () have forced the government to consider other options.
Center HZL (294.20) has 29.54% stake valued at approximately ₹ 37,000 crore and holds 7.91%.
(279.95) through Specified Undertaking of the Unit Trust of India (SUUTI), valued at around ₹ 27,000 crore, based on Friday’s closing price on the BSE.
The details of an offer for sale (OFS) and the amount of investment are still being made The government hopes the process will be completed by September.
The government has set an investment target of ₹ 65,000 crore for FY23. LIC’s public offering raised about Rs 20,560 crore earlier this month. The Department of Investment and Public Asset Management (DIPAM) has started internal discussions on the sale of shares in HZL and ITC, a person quoted above said.
“We have restructured our strategy. Even in the current market situation, we expect to get ₹ 64,000 crore from the sale of these shares,” the official said.
DIPAM is working on the technical aspects of OFS and the note will be sent to the cabinet for approval by June 15, the official said.
“We aim to finish these before September,” the official quoted above said. “But in the context of the global situation, there are reasons beyond our control so it would not be wise to give a specific timeline. We are flexible over time.”
There have been some initial discussions with the department
After the group withdrew the lawsuit last week. Vedanta has a majority stake in HZL, which it acquired in the previous round of investments in 2002. The Center has so far raised about Rs 23,575 crore through investments in the current financial year. Of this, ₹ 20,560 crore came from LIC IPOs and ₹ 3,000 crore from 1.5% sales of state-owned Explorer.
BPCL’s strategic sale has been halted due to warm response from investors in the wake of geopolitical developments. SCI’s investment is also behind schedule, though the government is hopeful of completing the transaction in the current financial year.