Govt. Decided to Sell Stakes in HUDCO, NBCC and NTPC

The government is planning to sell up to 10% stake each in real estate firms HUDCO and NBCC as also 3% in NTPC through an offer for sale (OFS), which could fetch about Rs 5,900 crore to the exchequer.

The Finance Ministry will soon float Request for Proposals (RFP) to appoint merchant bankers for managing the stake sale of HUDCO and NBCC, a source said.

“The Cabinet has cleared up to 10% stake sale in NBCC and HUDCO through OFS. Whether it would be sold in one go or not would be decided based on investor response,” the source told media.

At the current market price, sale of 10% in HUDCO and NBCC could fetch about Rs 1,000 crore and Rs 1,200 crore to the exchequer. NTPC’s 3% OFS would fetch about Rs 3,700.

The Cabinet had already approved 10% stake sale in power producer NTPC, of which 7% was sold in August last year. The stake sale fetched Rs 9,100 crore.

The source said that depending on market condition, the stake sale would happen.

With regard to state-owned HUDCO and NBCC, the ministry is keeping the companies ready to launch it as and when the time is ripe.

“HUDCO and NBCC OFS will take time, could be in October-December quarter,” the source said.

Housing and Urban Development Corporation (HUDCO) had listed itself on the stock exchanges in May last year.

The source said that one year lock-in requirement was over and the government could now go ahead with follow on offers or OFS. The IPO of HUDCO saw huge demand from investors and was subscribed nearly 80 times.

The government had last sold 15% stake through an OFS in NBCC for about Rs 2,200 crore in October 2016.

Currently, it holds 89.81% in HUDCO and 73.69% in NBCC. In NTPC, its stake stands at 61.71%.