BHEL follow-on public offer
Monday, 18 July 2011, 19:28 IST
Bangalore: The government has shortlisted 17 merchant bankers, including ICICI Securities, SBI Caps and Goldman Sachs, for offloading 5 percent stake in BHEL through FPO which will fetch over 4,700 crore at current price. The proposed offloading of the government's 5 percent stake in Bharat Heavy Electricals (BHEL) is part of the Centre's ambitious programme to mop up 40,000 crore through disinvestment in the current fiscal. Besides ICICI Securities, SBI Caps and Goldman Sachs, DSP Merrill Lynch (Bank of America), Enam Securities, Credit Suisse India, J M Financials, UBS Securities, Citi Bank, RBS, Nomura, IDFC, Kotak Mahindra Capital, Deutsche Bank, IDBI Capital Market Services and Edelweiss Capital have also been shortlisted, according to the Department of Disinvestment. Based on today's market capitalisation of 94,176 crore, five per cent disinvestment in BHEL would fetch over 4,700 crore to the government. At the end of June quarter, the government held 67.72 percent stake in BHEL. Nine merchant bankers would make their presentations regarding the FPO on July 18, while the remaining eight entities would do the same on July 19, the Department of Disinvestment said in a statement today. BHEL's consolidated net profit jumped 40percent to 6,053.36 crore in 2010-11. "The board of directors of the company has recommended the disinvestment of 5 percent of the paid-up equity of BHEL out of the government of India's shareholding," the state-run entity had said in May. This fiscal so far, the government has mopped up more than 1,100 crore by divesting five per cent equity in Power Finance Corporation (PFC). The government aims to generate 95,000 crore between 2011-12 and 2013-14 from selling its equities in state-run enterprises. In the last fiscal, disinvestments raked in 22,762.96 crore, much lower than the set target of 40,000 crore.