Divestment of BPCL, IPO of LIC likely by the last quarter of fiscal 22: a government official
Following the successful divestment of Air India, the government plans to sell BPCL during the current fiscal year. The government will also propose Initial Public Offerings (IPOs) of Life Insurance Company (LIC) during the last quarter of this fiscal year.
Speaking to ANI, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kant Pandey said, “LIC’s IPO will be a very important event. last quarter of the year. “
Another company on the government’s divestment list is Bharat Petroleum Corporation Ltd (BPCL). Pandey said the government also expects a divestment from BPCL in the last quarter.
The Secretary of DIPAM said: “BPCL’s due diligence process is ongoing. It is a very large company. So there’s a lot of due diligence work there, and we’re hoping to wrap that up as well. Pandey said we have received financial offers for the strategic divestment from Central Electronics Ltd (CEL), which may be the next company to divest.
Pandey said: “We have received the financial offer and the process is now moving to the closing phase. We don’t know yet what the offers are or if the offers would be good enough for us to divest. It is still sealed in. the envelope. But, yes, the process has reached that stage of divestment. “
Emphasizing the central government’s divestment goal, Pandey said, “We have a number of deals going on. There are basically two parts to strategic divestment. One is the first step where we invite the expression of interest and qualify people based on certain criteria. , which are specified in the expression of interest. And after that, the qualified bidders do the detailed due diligence on the companies through, you know, looking at the contracts, looking at the companies in more detail, looking at their assets, and also the purchase agreement. shares which is a draft share purchase agreement given to them. Then the conditions are specified and the final conditions are agreed upon, and on that everyone can see. After seeing the essence and seeing the data about the company, having done the due diligence and having agreed on the final terms and conditions, we invite the offers in the RFP. Once the offers are there, then we will determine the pri ce reserve. And then we will open the bids to get it, and based on the highest bid, we will choose the winning bidder. Subsequently, the conditions will be met and things will be closed. So that’s the general process. We have several transactions that are at an advanced stage, an advanced stage of due diligence, and once the financial offers have been obtained from them, we will then move on to the closing stage. So that’s it overall. We have several transactions like Shipping Corporation of India, BEML, Nilanchal Ispat, Pawan Hans, Central Electronics. In fact, we received their offer the day before yesterday. So here we are hoping that we would be able to close the deal and the deals go like a pipeline. And advanced stage … it can be done in April or May and June too. So it depends on where the transaction is. “
The secretary of DIPAM is confident of reaching the divestment objective set by the Center for the 2021-22 fiscal year of ??1.75 crore lakh.
Pandey said, “Our effort is just to keep the work going and try to use the opportunities no matter what, and that depends a lot on the bidders. It really depends on how they do the due diligence. in the second wave. We’ve lost. You know, the first trimester is gone. But now that things are back on track, we are confident that things will move forward. Whatever we can do, only time will tell, but we are heading towards closing more deals. “
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