The divestment of government holding in Bharat Petroleum Corporation and National Aluminium Company would be undertaken simultaneously in the Indian and American markets, according to Communications and Divestment Minister Arun Shourie.
Speaking to reporters in Bangalore on Monday, Shourie said market regulator Securities and Exchange Board of India had approved the simultaneous offloading of shares in these companies through the offloading of shares in the domestic market and the issue of American Depository Receipts for listing on the New York Stock Exchange.
The government, which proposes to complete the stake sale in these two majors by November, holds 66.2 per cent in BPCL and 87.15 per cent in Nalco.
In the case of BPCL, it proposes to issue ADRs to the extent of 25.2 per cent, offload 10 per cent in the domestic market and sell five per cent to employees at concessional rates.
As for Nalco, the government plans to sell 29.15 per cent to a strategic buyer, 10 per cent in the domestic market and 20 per cent in the American market.
The Core Group of Secretaries on Divestment would be meeting later this week to finalise the global advisor for the stake sale in BPCL, he informed.
Expressing satisfaction with the ongoing divestment of 25 per cent stake in Maruti, Shourie said the response to the offer was a 'vote of confidence not just in a company, but a vote of confidence in India.'
The Maruti initial public offering has been made at a floor price of Rs 115 per share and closes on June 19.
UNI
