ONGC, NHPC, Coal India slip 2-4% as Cabinet clears divestment proposals
The disinvestment department has already shortlisted merchant bankers for the ONGC issue, which could hit the market later this month or early October.
By ET Online |
NEW DELHI: ONGC, NHPC and Coal India slipped 2-4 per cent in trade on Thursday, after government kicked off the big-bang disinvestment programme it announced in the budget with the cabinet committee on economic affairs (CCEA) clearing stake sale in Coal India, ONGC and hydropower utility NHPC.
Reacting to the news NHPC slipped 4.01 per cent, followed by Coal India which dropped as much as 2.3 per cent and ONGC slipped 2.04 per cent in trade.
At 09:30 a.m.; NHPC was trading 3.1 per cent lower at Rs 21.70. It hit a low of Rs 21.50 and a high of Rs 22.45 in trade today.
Coal India was down 2.3 per cent to Rs 365, while ONGC was trading 1.06 per cent lower at Rs 440.60.
At current prices, disinvestment in these companies is expected to meet budget target of Rs 43,425 crore. The first is likely to be a 5 per cent sale in steel maker SAIL that is expected to fetch Rs 1,700 crore.
CCEA cleared a 5 per cent stake sale in ONGC that, at current prices, will fetch more than Rs 19,000 crore, PTI reported. The company's share price has risen more than 50 per cent in the past year, with the narrowing of diesel subsidy providing a big boost to valuations in recent months, added the report.
The disinvestment department has already shortlisted merchant bankers for the ONGC issue, which could hit the market later this month or early October. The government holds 68.94 per cent in ONGC.
Proposal to sell 11.36 per cent in NHPC will fetch over Rs 3,000 crore at current prices.
Reacting to the news NHPC slipped 4.01 per cent, followed by Coal India which dropped as much as 2.3 per cent and ONGC slipped 2.04 per cent in trade.
At 09:30 a.m.; NHPC was trading 3.1 per cent lower at Rs 21.70. It hit a low of Rs 21.50 and a high of Rs 22.45 in trade today.
Coal India was down 2.3 per cent to Rs 365, while ONGC was trading 1.06 per cent lower at Rs 440.60.
At current prices, disinvestment in these companies is expected to meet budget target of Rs 43,425 crore. The first is likely to be a 5 per cent sale in steel maker SAIL that is expected to fetch Rs 1,700 crore.
CCEA cleared a 5 per cent stake sale in ONGC that, at current prices, will fetch more than Rs 19,000 crore, PTI reported. The company's share price has risen more than 50 per cent in the past year, with the narrowing of diesel subsidy providing a big boost to valuations in recent months, added the report.
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The disinvestment department has already shortlisted merchant bankers for the ONGC issue, which could hit the market later this month or early October. The government holds 68.94 per cent in ONGC.
Proposal to sell 11.36 per cent in NHPC will fetch over Rs 3,000 crore at current prices.
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