The total proceed from the three offerings is expected to be around Rs 6,000 crore. Half of that will likely be garnered by HAL, with RINL expected to rake in Rs 1,500 crore and THDC Rs 500 crore.
Sources say that the IPO of HAL, a defence behemoth and India’s only manufacturer of Military Aircraft, is on the backburner as the Defence Ministry is not keen on selling stake in one of its marquee organizations.
Officials from disinvestment department will likely meet their counterparts from South Block soon to hear their concerns and pushing for the need to take the company public, the official said, adding that the date for such a meeting had not yet been decided.
Similarly, sources said that there was unwillingness on the part of the Uttar Pradesh government to take THDC public. The hydro-electric power company, formerly known as Tehri Hydro Development Corporation, is jointly promoted by the Centre and the UP government. They added that DoD is planning to meet officials from UP’s Finance Department to discuss the issue. Further details were not revealed.
As for RINL, the Vizag-based steelmaker suffered damages as Cyclone Hudhud hit the country’s east coast in October last year. The Parliament was informed that the company had incurred damages worth about Rs 350 crore. Government officials later said that the proposed IPO would be deferred till the company could recover. Here too, Officials will soon start discussions with representatives from RINL to come up with a feasibility plan and roadmap for a market debut.