Tag: divestment

The government has done a fantastic job of managing growth and providing the money for Capex in the Budget 2022 proposals according to analysts. They have raised more resources than was expected. The government’s fiscal management in these two years of the Covid pandemic has been phenomenal. The thrust of the Budget has been in infrastructure modernisation. All this will have a multiplier effect on job creation and economic growth. That said, another good thing is that the tweak(s) in the tax rates have been minimal. Even the long-term capital gains tax across asset classes has been capped at 15 percent. The message that the government wants to convey through this is that the tax regime is stable and does not warrant much change. This is one thing that the markets and all investors will like. All this will help investors commit big money. Read more

Kotak Mahindra Bank on Tuesday said that it will sell 20 crore shares held in Airtel Payments Bank (APBL) for a cash consideration of Rs 294 crore or more to Bharti Enterprises Ltd.A share purchase agreement has been executed by the bank for divestment of 20,00,00,000 equity shares (8.57 per cent stake) held by Kotak Mahindra Bank Ltd in APBL. These shares were acquired for Rs 200 crore invested in tranches during calendar years 2016 and 2017, the bank said in a regulatory filing.The sale is expected to be completed by September 15 or before, for "cash consideration equal to or higher than ₹294.8 crore; to be determined in accordance with the terms of the share purchase agreement," it added. The bank said it does not require any governmental or regulatory approvals for the proposed transaction. Bharti Enterprises has received no objection from the RBI to enable execution of the proposed transaction, it said. This transaction does not constitute a related party transaction. Read more

The Centre is unlikely to meet its 2019-20 revised divestment target of Rs 65,000 crore because of bearish market conditions, according to official sources. With a number of offers for sale (OFS) such as NMDC, SAIL, PFC, Coal India, IRCON and Hindustan Aeronautics planned for March getting deferred, the divestment target could fall short by close to Rs 10,000 crore, government estimates suggest. The only transactions expected to go through by March 31 are the acquisition of THDC and NEEPCO by NTPC, the planned initial public offering of IRFC, and some buybacks by PSUs, it’s learned. The finmin is expecting about Rs 15,000 crore from NTPC’s acquisition of THDC and NEEPCO, and about Rs 5,000 crore from the planned IPO of IRFC, besides some buybacks.So far, the Department of Investment and Public Asset Management has mopped up about Rs 35,000 crore. The above transactions will take the disinvestment proceeds to around Rs 55,000 crore, which will be Rs 10,000-crore short of the RE.