The government has kickstarted the process of selling up to 25 per cent stake in National Seeds Corporation (NSC) through an initial public offering (IPO).
The Department of Investment and Public Asset Management (DIPAM) has invited bids from merchant bankers and legal advisors for working on the proposed IPO and subsequent stock exchange listing of the PSU under the Ministry of Agriculture and Farmers Welfare. The last date for submitting bids by merchant bankers and legal advisors is September 1.
The government will appoint up to 2 bankers for managing the stake sale, DIPAM said while inviting proposals from merchant bankers relating to disinvestment in NSC. The government holds 100 per cent stake in the company. A miniratna PSU, NSC reported a profit after tax of Rs 29.92 crore for the fiscal 2019-20. As on March 31, 2020, its net worth stood at Rs 646.37 crore. The government has set a disinvestment target of Rs 1.75 lakh crore for 2021-22 (April-March). So far, it has raised about Rs 8,368 crore by selling stake in Axis Bank, NMDC Ltd and Housing and Urban Development Corp (HUDCO). The mega IPO of country's largest insurer LIC is also in the works and is likely to be launched in the March quarter of the fiscal.