Govt may sell 5% stake in PFC next week

NEW DELHI: The government is likely to offload 5 per cent of its stake in Power Finance Corporation (PFC) next week which could fetch Rs 1,850 crore to the exchequer.

The PFC stake sale through Offer for Sale (OFS) or auction route may happen as soon as next week, a source said.

Shares of PFC today closed at Rs 281.10 on BSE. At current market price, a sale of 5 per cent stake or 6.6 crore shares would fetch the exchequer over Rs 1,850 crore.

The government today said it was looking for merchant bankers to sell its 5 per cent stake in Dredging Corporation of India Ltd ( DCIL).

The disinvestment in DCIL, which cater to dredging requirements of Indian ports, could fetch about Rs 56 crore.

The government in this fiscal so far has raised Rs 1,700 crore through 5 per cent stake sale in SAIL against the targeted Rs 43,425 crore.

It is racing against time to meet its disinvestment target for this fiscal. Blue-chip companies like ONGC, NHPC and Coal India have been lined up for disinvestment.

In addition, it is also targeting Rs 15,000 crore from sale of residual stakes in private companies in this fiscal.

The Request for Proposal (RFP) for merchant banker to manage sale in DCIL follows similar tenders for three blue-chip firms--IOC, BHEL and NALCO. Government has also invited tenders for merchant banker to assist it in diluting stake in NMDC.

DCIL's shares closed Rs 401.40 apiece on the BSE, down 1.62 per cent over yesterday's close. Market capitalisation of the company is about Rs 1,124 crore.

Employees of both, PFC and DCIL, will get share at 5 per cent discount.