Govt kick starts process for strategic sale of HSCC

The government has invited expression of interest (EOI) for strategic sale in Hospital Services Consultancy Corporation (India) Limited. This is, however, limited to acquisition of the firm by similarly placed central public sector enterprises (CPSEs). This is first Expression of Interest, which the government has put out for strategic sales.

The Preliminary Information Memorandum (PIM) has been prepared by Yes Bank. At present the government holds 99.98% stake in the firm. In the PIM, it has been stated that the company has initiated the the process to buyback equity shares with a total face value equivalent to 25% of the aggregate paid- up equity capital and free reserves which will be finalized during the course of the transaction.

HSCC is a mini ratna –category II Public Sector Undertaking and the key services offered by the company include conceptual studies & management consultancy, procurement, project management, information technology, facility design, engineering studies and logistics & installation.

As on July 15, the issued and fully paid up share capital of the firm was around Rs 2.40 crore. The firm also has around 3,700 square meter of land available.

Of the Rs 72,500 crore targeted from disinvestment this financial year, the government has raised about Rs 19,157 crore so far. The government has set a target of Rs 15,000 crore through strategic sales.