The government intends to sell 5%-10% stakes in Coal India Ltd., Hindustan Zinc Ltd., and Rashtriya Chemicals and Fertilizers Ltd. through the so-called offer-for-sale mechanism, according to people who asked not to be identified because the details are not yet public. They added that five firms, including a listed entity under the railway ministry, could be chosen.
According to reports, India intends to sell small stakes in state-owned companies such as the world’s largest coal miner and Asia’s largest zinc producer in order to capitalize on a stock market rally and boost revenue in the final quarter of the fiscal year.
Hindustan Zinc was a company that was majority owned by the government. The government had previously sold a 26 percent stake in the company in 2002, which was purchased by Anil Agarwal’s Vedanta Group. The mining conglomerate later increased its stake in the company to 64.92 percent.
🚨 Indian Govt looking to sell 5%-10% in Coal India (world’s biggest coal miner), Hindustan Zinc (Asia’s largest zinc producer), RCF to ride a stock market boom and boost revenue in Q4, FY23.
— Indian Tech & Infra (@IndianTechGuide) November 25, 2022
Other media reports indicate that the government intends to sell 10-20 percent of its stake in Rashtriya Chemicals Fertilizers (RCF) and National Fertilizers (NFL) this year.
According to sources, the disinvestment target for 2023-24 could be set at around Rs 65,000 crore. According to data on the Department of Investment and Public Asset Management (DIPAM) website, it has received more than Rs 24,000 crore in disinvestment receipts so far in the current fiscal.