The finance ministry is planning to divest up to 25 per cent stake in power producer NEEPCO through an initial public offering in January-March quarter, an official said.
The ministry has selected 3 merchant bankers — Elara Capital, Karvy Investor Services Ltd and Equirus Capital — for managing the initial public offering (IPO) and subsequent listing of NEEPCO.
It will initiate the process of drafting of draft prospectus of the issue next month and subsequently file with Sebi in the September-December quarter, the official said.
“The merchant bankers have been finalised earlier this month. The IPO is likely to happen in January-March quarter,” the official told PTI.
The government has 100% holding in NEEPCO, which provides about 35 per cent of the energy requirement of the north-east region. It has a portfolio of hydro, thermal and renewable (solar) projects.
The Cabinet had in April last year approved the listing of NEEPCO through public offer of shares up to 25 per cent of the government shareholding, which may include offer of fresh shares for raising of funds from market.
“Actual quantum of disinvestment along with the mode of raising resources will be decided by the alternative mechanism, headed by the finance minister, the official said.
The government so far in current fiscal has raised Rs 9,000 crore through PSU disinvestment. For full fiscal, the stake sale target has been fixed at Rs 80,000 crore.
Source: PTI
