Government may not dilute SUUTI stake in listed companies this fiscal

NEW DELHI: Confident of meeting the disinvestment target of Rs 43,425 crore this year, the government may not dilute its stake in listed companies held through SUUTI in the current fiscal.

"Finance Ministry has put the SUUTI stake sale in listed companies on the back burner as more consultation is needed. Stake sale in SUUTI is unlikely now as disinvestment target is expected to be achieved," a Finance Ministry official said.

Last month, the Cabinet approved sale of shares in Coal India, ONGC and NHPC which together may fetch about Rs 44,000 crore to exchequer.

According to the sources, Finance Ministry is not keen on diluting stake in listed companies of SUUTI and instead sell stake in unlisted companies held through it.

Specified Undertaking of UTI (SUUTI), formed in 2003 is an offshoot of erstwhile UTI, has investments in several unlisted companies.

Axis Bank, L&T and ITC are the listed companies in SUUTI. The government wants to retain stake in these companies for the time being, sources said.

The government aims to collect Rs 3,000 crore through SUUTI stake sale in current fiscal.

In March, the government sold 9 per cent of its stake in Axis Bank held through SUUTI for about Rs 5,557 crore.

SUUTI currently holds 11.72 per cent in Axis Bank, 11.27 per cent in ITC and 8.18 per cent in L&T.