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Govt Plans 10% Stake Sale In MIDHANI Via Offer For Sale

The government is planning to sell up to a 10% stake in defense PSU Mishra Dhatu Nigam Ltd (MIDHANI) in the current fiscal ending March, an official said. The company got listed on stock exchanges in April 2018 and the government had raised ₹438 crores by selling a 26% stake through IPO.

The official said that with the opening of the space sector to foreign investment and bringing the defense sector under automatic route for 74% foreign direct investment (FDI), MIDHANI shares are expected to attract investors. MIDHANI manufactures special steel and superalloys for use in defense, nuclear, and space sectors. “We are looking at up to 10% stake dilution via offer for sale,” the official said. Shares of MIDHANI closed at ₹193.50 apiece on the BSE on Friday. 

At the current market price, the government can raise about ₹360 crores by selling a 10% stake in the company.

The official further said that with big-ticket divestment plans hit by the COVID-19 pandemic, the government is readying public sector companies for minority stake sales in the remaining months of the current fiscal.

So far this fiscal, the government has raised ₹6,138 crores by selling a minority stake in Hindustan Aeronautics Ltd and Bharat Dynamics Ltd through an offer for sale so far this year. The government also divested 15.2% in Mazagon Dock Shipbuilders Ltd through an initial public offering. The government has set a ₹2.1 lakh crore disinvestment target in the current fiscal. This includes ₹1.20 lakh crore through CPSE stake dilution and ₹90,000 crores through stake sale in financial institutions — more than four times what it raised last financial year.

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Kartik Sud

I am working as a News Author With the DefenceXP network, Observing LOC and LAC

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