Rashtriya Chemicals

According to a media survey, the sales at the lower end of the range with current prices may yield the government nearly Rs 16,500 crore (2 billion dollar). Earlier, a budget of Rs 65,000 crore for India from such asset sales in the year during March was set

India is planning to sell small stakes in state-run firms along with the biggest coal miner in the world and largest zinc producer in Asia. This will result in a stock market boom and will boost revenue in the final quarter of the financial year, according to a media report.

The government may sell 5 to 10 per cent in Coal India Limited (CIL), Hindustan Zinc, Rashtriya Chemicals and Fertilizers, through offer-for-sale mechanism, the report added. Along with one listed entity under the railway ministry, all five firms could be chosen.

According to a media survey, the sales at the lower end of the range with current prices may yield the government nearly Rs 16,500 crore (2 billion dollar).

Backed by a healthy pace of economic growth, local stocks are reported a record high and the cash raised will boost Prime Minister Narendra Modi’s administration fund and its subsidy bill that has gone up partly due to the war in Ukraine.

Earlier, a budget of Rs 65,000 crore for India from such asset sales in the year during March was set. The amount raised so far could reach just one-third of the target, majorly from the initial public offering of Life Insurance Corporation in May contributing to 2.7 billion dollar.

In order to measure the investor’s interest in the stake sales, roadshows have begun, said the media report.

Coal India registered a surge of around 46 per cent during last year, whereas Rashtriya Chemicals was reported 58 per cent. Leaving behind the benchmark S and P BSE Sensex’s roughly 6 per cent advance.