Due to the extended year end holidays abroad, many potential investors had asked for an extension of KPMG India transaction adviser.
The official stated that the government is still looking for offers for sale (OFS) in Hindustan Zinc to increase disinvestment. However, all strategic sales of the cards will only be realized in FY24. The official said that the department for investment and public asset manager (Dipam), will invite EoI to purchase a 30% stake in ConCor, which is worth approximately 14,000.500 crore at current market price.
“The size of the stake sale in HZL depends on market appetite,” said the official. He added that the government isn’t chasing an annual disinvestment target, and will disinvest minority stakes into CPSEs if the government sees value.
The Centre invited EoI to offer 60.72% in IDBI Bank. This includes 30.48% of the government’s direct ownership and 30.24% of the state-run LIC.
Friday’s close of the stock market was 54.75 per piece on the BSE. This is a decrease of 5.68% from the previous close.
According to the official, Dipam received 167 questions from domestic and NBFC banks, as well as foreign banks and funds in the pre-EoI phase. This indicated strong interest for the lender.
Disinvestment receipts by the government stand at Rs 28383 crore in FY23, 44% less than the annual target 65,000 crore.
At current market price, HZL’s share of the Centre’s investment is worth around 39.500 crore. It is an integrated miner and producer non-ferrous materials, such as zinc and lead. The government could also sell minority stakes at a few energy or mining CPSEs in FY23, even if HZL does not reach its annual target, to reduce the shortfall.
Dipam is interested in pursuing strategic sales like HLL Lifecare, Shipping Corporation of India and BEML. FE