DIPAM readies blueprint for FY18 divestment

As the government looks to list General Insurance Companies and Rail PSUs, the divestment department is readying a strategy to meet the mammoth stake sale target of Rs 72,500 cr for FY18. ET Now learns that the Department of Investment and Public Asset Management has drawn up a strategy with specific timelines for minority stake sale next year.

The government will use a multi-pronged approach to meet the divestment target next year. "OFS, Buybacks, another CPSE ETF everything is on cards. We will look at good opportunities in the market", a government source

Sources suggest buybacks or stake sale in PSU giants like OIL, BHEL and NBCC could be high on agenda. The government is targeting to raise Rs 3770 crores from 10% stake sale or buyback in oil explorer OIL India. Another Rs 5200 cr may come in from 10% stake sale or buyback in BHEL.

For companies that are plush with cash, the government is exploring the option of buybacks. "Buyback of 25% of networth likely for EIL, NBCC. Power majors NTPC and NHPC are also good candidates for buyback. However, board approval will be sought for them", a source told ET Now.