Govt to raise Rs 1,670 cr from Bharat Electronics share sale

The share offer was oversubscribed by 260% with participation from retail, institutional investors

The government will raise about Rs 1,670 crore ($250 million) from its sale of a 5 per cent stake in state-run Bharat Electronics Ltd, the government said on Thursday, part of an asset sales programme to help fund a fiscal deficit.

The government, which owned 74.41 per cent of the manufacturer of equipment for communication, radar and naval systems, offered the shares this week in the sale that ended on Thursday at a floor price of 1,498 rupees each.

It said the share offer was oversubscribed by 260 per cent with strong participation from both retail and institutional investors.

The government has budgeted for a total of Rs 455 billion ($6.8 billion) from asset sales in the current fiscal year that ends in March. It has raised about Rs 377 billion so far, excluding the Bharat Electronic's sale.

 

Earlier this month, a government agency sold a $1 billion stake in ITC Ltd to state-run Life Insurance Corp (LIC). 

LIC, which typically invests heavily in government divestments, also bid in the Bharat Electronics sale, according to Thursday's government statement.