JOIN US The Centre on Wednesday approved disinvestment of 10% stake in the state-owned Housing and Urban Development Corporation (HUDCO).
“The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi has given its approval for disinvestment of 10% paid up equity of HUDCO out of Government of India’s shareholding of 100% through Initial Public Offering in the domestic market” an official statement said.
The CCEA also approved allowing a price discount of up to 5% on the issue price to retail investors and HUDCO employees. The actual discount to them will be approved by the Alternative Mechanism based on recommendations of a High-Level Committee of Officers, it added.
According to the statement, the paid-up equity capital of HUDCO, with a net worth of Rs 7,800 crore, is Rs 2,001.90 crore as on March 31, 2015.
HUDCO was incorporated on April 25, 1970, as a wholly owned Government of India Enterprise under the administrative control of the Ministry of Housing and Urban Poverty Alleviation. The organisation is providing long-term finance for construction of housing, urban development projects in the country. The government has set a disinvestment target of Rs 56,500 crore for this fiscal. Of this, Rs 36,000 crore is to come from minority stake sale in PSUs and Rs 20,500 crore from strategic sale.
The government, which is planning to sell the stake in 15 PSUs in this fiscal, has already kickstarted the disinvestment programme with 11.36% stake sale in NHPC, which fetched Rs 2,700 crore.
It has lined up as many as 15 PSUs, including Coal India, NMDC, MOIL, MMTC, National Fertilisers, NALCO and Bharat Electronics, for divestment in 2016-17.