India’s federal Finance Ministry’s Department of Investment and Public Asset Management (Dipam) is mulling buybacks in defence PSUs including HAL. HAL is Hindustan Aeronautics Limited. An Inter-ministerial group will soon meet to finalise buybacks in PSUs. Dipam is currently weighing the capex plans and dividends of the defence PSUs to decide on buybacks.
Other PSUs in defence include Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), Mishra Dhatu Nigam Limited (MIDHANI), Mazagon Dock Shipbuilders Limited (MDL), Garden Reach Shipbulders And Engineers Limited (GRSE), Goa Shipyard Limited (GSL), Hindustan Shipyard Limited (HSL), etc…
Dipam will also shortly hold a meeting to review timelines for buybacks, offer for sale (OFS) in FY23.
Dipam will set timelines for OFS in Coal India Limited (CIL), Cochin Shipyard Ltd (CSL), General Insurance Corporation of India (GIC), NLC India Limited, formerly known as Neyveli Lignite Corporation Limited (NLC), Hindustan Zinc Limited (HZL) in the review meet. Dipam will also discuss timelines for initial public offering (IPOs) of ECGC Ltd. (Formerly known as Export Credit Guarantee Corporation of India Ltd.), WAPCOS Limited earlier known as Water and Power Consultancy Services (India) Limited, National Seeds Corporation (NSC) in review meet.
The meeting will also estimate and discuss dividends from PSUs in FY23. During the current financial year 2022-23 so far Rs. 3,101 crore has been obtained through dividend from the CPSEs. FY23 budgeted target for RBI, PSU dividends at Rs. 73,948 crore.
The review meeting will discuss strategic sales which will be completed this year.
Disinvestment budgeted target for FY23 is Rs. 65,000 crore. During the current financial year so far Rs. 24,543.67 crore has been obtained through OFS, IPO.
