Press Release (ePRNews.com) - INDORE, India - Feb 21, 2017 - The finance ministry has invited proposals from investment bankers to help the government sell shares in three railway enterprises viz. Indian Railway Catering & Tourism Corp. (IRCTC), IRCON International Ltd (IRCON) and Indian Railway Finance Corp. Ltd (IRFC).
The Department of Investment & Public Asset Management (DIPAM), under the finance ministry, vide its Ad published in newspapers on 20 Feb 2017, sought proposals from investment bankers by 16 March to manage the IPO and advise the govt in listing the stocks.
The IRCTC is a pioneer in e-commerce in India handling almost 60% of railway ticket bookings, while IRFC is the sole financier of railway projects by sourcing low-cost funds from the market. IRCON is the infrastructure and engineering company of the railways, besides building projects overseas for governments and private parties.
Finance minister Arun Jaitley, in the Union budget announcement on 1st February, said their listing will foster greater public accountability and open the true value of these companies. The government has set an ambitious Rs 72,500-crore disinvestment target for 2017-18, against the revised estimate of Rs. 45,500 crore for 2016-17. It has collected Rs. 27,917 Cr, through share sales in public sector units in 2016-17, implying it aims to sell shares in state-owned companies, valued about Rs 17,583 crore by 31 March.
The economic affairs cabinet committee had approved the public listing of five state- owned non-life insurance companies and reduction of the government’s share in them to 75% from 100%. The listed companies are Oriental Insurance Co., National Insurance Co., New India Assurance, United India Insurance and national reinsurer General Insurance Corp. of India. These company’s name will be listed on the Stock exchanges.
The government has also put in place a revised mechanism so as to ensure time-bound listing of identified PSEs on the stock exchanges.
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