Government expects to raise about Rs. 2,000 crore through disinvestment of the National Hydroelectric Power Corporation (NHPC), Parliament was informed on Friday.
“The Government of India is likely to realise an amount of approximately Rs. 2,000 crore from NHPC buyback offer,” Minister of State for Finance J. D. Seelam said in a written reply to the Lok Sabha.
The board of the state-run company has approved buying back of 10 per cent of total shares or over 123 crore shares on a proportionate basis from shareholders, at a price of Rs 19.25 a piece. The government holds 86.36 per cent stake in NHPC.
Mr. Seelam said the Empowered Group of Ministers (EGoM) on disinvestment has decided to tender shares up to the size of the buyback proposed by the company.
The buyback which opened on November 29, 2013 closed on December 12, 2013. The entire process would be completed by January 7, 2014, Mr. Seelam said.
Under the buyback mode, the government can raise money by selling its equity in the company to the PSU itself.
The government aims to raise Rs. 40,000 crore through PSU disinvestment in the current fiscal. So far this fiscal, it has managed to garner about Rs. 3,000 crore through PSU stake sale.