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Govt to sell BHEL, MUL stake next fiscal
By siliconindia staff writer
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Tuesday, 25 January 2005, 20:30 IST
NEW DELHI: Heavy Industries Minister Santosh Mohan Deb today said the government would sell a part of its stake in BHEL and Maruti next fiscal.
Deb said the government would sell 10 per cent of its stake in BHEL and less than 7.5 per cent in Maruti Udyog Limited.
The government hopes to raise Rs 1,600 crore from the stake sale in engineering and manufacturing giant BHEL.
The sale of stake in India's largest carmaker MUL will yield between Rs 800 crore and Rs 900 crore.
The issue of this stake sale will be discussed at the Union Cabinet meeting on Thursday.
Government has already said that the IPO route could be one of the possibilities for the partial disinvestment of stake in BHEL and MUL.
The government currently holds 67 per cent stake in BHEL. Financial institutions and some held by the employees hold the rest.
Sources in BHEL say the stake sale would not affect the management of the company. Even after the government sells 10 per cent stake, it would maintain its control on the company.
BHEL is expected to touch a turnover of Rs 9,700 crore in the current fiscal.
In Maruti, the government currently holds 18.24 per cent and after the sale of 7.5 per cent of the equity, its share in the company will come down to 10.74 per cent.