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DoD moots IPOs for BSNL, GAIL, IOC

Buoyed by a recent spurt in market prices of shares of public sector units, the divestment department has mooted a proposal for mopping up Rs 250 billion by making public offers in five major PSUs including BSNL, IOC and GAIL.

The move to float initial public offerings is part of a strategy chalked out by the department to raise as much as Rs 250 billion from the market, official sources said.

The sources said the proposal envisages diluting government equity in Bharat Sanchar Nigam, Indian Oil Corporation, Gas Authority of India, National Thermal Power Corporation and Oil and Natural Gas Commission.

Asked about the quantum of equity that is proposed to be offloaded the sources said the figure would vary for different companies. However government equity would not fall below 51 per cent in the companies.

"Different figures have been proposed for each of the companies. However the maximum suggested is around 25 per cent, " they added.

The strategy envisaged by the divestment department involves a well-thought-out plan to offer equity to public in a manner so as to ensure that market does not get flooded with such issues.

Earlier Divestment Minister Arun Shourie had said that the divestment department had proposed a series of measures to Finance Minister Jaswant Singh to take advantage of the spurt in stock prices to mop up large resources for the government.

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