DIPAM, the disinvestment department of the Finance ministry is set to see flurry of engagements in the coming months with a pre-bid meeting set for May for Kamarajar Port on May 7.
A pre-bid meeting for Transaction Advisor and Legal Advisor for Strategic Disinvestment of Kamarajar Port Limited (KPL), will take place on May 7.
Sources said in the next six months, the Kamarajar Port disinvestment should reach a finality stage as it is a disinvestment case similar to HPCL-ONGC deal that fetched government around Rs 37,000 crore.
DIPAM would need a big deal like Kamarajar also to achieve the current fiscal target of Rs 90,000 crore, they said though other options like ETFs are always there.
In March this year, the Centre decided to divest its stake in the Kamarajar Port Ltd. (KPL) to Chennai Port Trust (ChPT) in a single process through strategic sale.
The Cabinet Committee of Economic Affairs (CCEA) gave its in-principle approval for strategic disinvestment of 100 per cent equity shares of KPL to ChPT in a single stage process by following aarm's length' principles.
The Central Government currently holds 67 per cent of shares and Chennai Port Trust 33 per cent shares in Kamarajar Port Ltd. Chennai Port will get 67% stake post divestment of buying government stake.
This is being seen as one of the biggest strategic disinvestment deals and in line with mega Rs 36,915 crore ONGC-HPCL deal of 2018 and the more recent Dredging Corporation of India (DCI) 73.44 per cent share sell-off to a consortium of four State-owned ports, comprising Visakhapatnam Port Trust, Paradeep Port Trust, Jawaharlal Nehru Port Trust and Deendayal Port Trust - for Rs 1,050 crore.
DIPAM has already received bids of legal advisers for disinvestment of shareholding of BEML Limited in Vignyan Industries Limited . BEML's shareholding as on date is 2,69,376 shares constituting to 96.56% of equity.
For KIOCL Follow On Public Offer technical bids will now be opened on May 17. The government holds 98.99% stake in KIOCL.
The Cabinet has approved IPOs of Telecommunication Consultants (India) (TCIL), RailTel Corporation India, National Seed Corporation India (NSC), Tehri Hydro Development Corporation (THDC), Water & Power Consultancy Services (India) (WAPCOS) and FCI Aravali Gypsum and Minerals (India) (FAGMIL).
Government also seeks to invite expression of interest for selling its 100 per cent stake in Indian Medicines Pharmaceutical Corporation Ltd .
(Anjana Das can be contacted at anjana.d@ians.in)
--IANS
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