Department of Investment and Public Asset Management (DIPAM) begins testing the waters for the next round of Offer for Sale. Dipam is assessing investor interest for Offer for Sale in Rashtriya Chemicals and Fertilizers Limited (RCF), National Fertilizers Limited (NFL), Mazagon Dock Shipbuilders Limited (MDL), Hindustan Aeronautics Limited (HAL).
Dipam is likely to finish assessments of investor interest in a week. Dipam may decide to issue OFS in any of these PSUs in 15 days. Dipam is planning 10% stake sale via OFS in RCF, 20% in NFL. Dipam will decide on quantum of stake sale via OFS in MDL, HAL after investor feedback.
Government currently holds 75% stake in RCF. Government currently holds 74.71% stake in NFL. RCF stock gained 44% in last six months.
So far in the current financial year, Dipam has come out with ONGC OFS in which it sold 1.5% to get approximately Rs 3,000 crore. After that the markets were volatile due to the geopoliticial uncertainties and the department held back on coming out with another OFS.
But currently the markets seem to be stabilising and defence stocks are doing well. The government may want to take advantage of the markets and come out with the next set of OFS.
It remains to be seen after the investors’ feedback is received, which is the PSU it decides to come out with an OFS and of what quantum.
Dipam has a target of Rs 65,000 crore in the current financial year for which secondary market transactions like OFS are equally important.
