The official stated that potential investors requested an extension from KPMG India, transaction adviser, due to the extended year-end vacations overseas.
According to the official, the government is relying on OFS (offers for sale) in Hindustan Zinc and HZL to maximize disinvestment receipts during the remaining financial year. All strategic sales will not be made until FY24. According to the official, ConCor will be selling a 30.8% share (or approximately 14.500 crore at current market prices) in January to the department of investment.
The official stated that HZL’s sale price will be determined by market appetite. He also said that the government does not aim to meet the annual disinvestment target. However, it will invest minority stakes in CPSEs if it believes they are valuable.
The Centre invited EoI on October 7th and offered to sell 60.72% of IDBI Bank’s total stake, which includes 30.48% owned by the government and 30.24% held by the state-run LIC.
The stock of the bank closed Friday at 54.75 per share on the BSE, down 5.68% over the previous close.
The official stated that Dipam had received 167 inquiries from foreign banks/ NBFCs and domestic banks during the pre-EoI stage. This indicates strong interest in the lender.
Fiscal 23’s disinvestment receipts are at Rs 28383 crore, 44% below the annual target of 65,000 Crore.
At current market prices, the Centre’s stake at HZL, an integrated miner that produces non-ferrous metals such as zinc, lead and silver, is valued at around 39.500 crore. To reduce the deficit, HZL could be sold by the government in FY23.
Dipam is also interested in strategic sales, such as HLL Lifecare and Shipping Corporation of India. FE