By IANS,
New Delhi : The Cabinet Committee on Economic Affairs Tuesday approved disinvestment of five percent paid up equity in Bharat Heavy Electricals Limited (BHEL), a public sector enterprise that specialises in execution of heavy engineering and power equipment manufacturing.
In a meeting chaired by Prime Minister Manmohan Singh, the CCEA cleared five percent stake sale, part of the government’s programme to mop up Rs.40,000 crore through public sector disinvestment in the current fiscal.
The government will disinvest five percent equity in the company, out of its share holding of 67.72 percent through book building process in the domestic market.
The paid up equity capital of the company is at present Rs.489.52 crore. “The government has decided to allow 5 per cent price discount to the retail investors as well to encourage greater public ownership of the public sector companies,” said a statement by the government.
After this disinvestment, the Indian government’s shareholding in the company would come down to 62.72 percent.