First-ever sale of 'enemy shares'; buyback by CPSEs yield over Rs 11,300 cr to exchequer in FY19

Enemy property refers to the assets left behind by people who migrated to Pakistan or China and are no longer citizens of India.

Press Trust of India March 25, 2019 07:35:47 IST
First-ever sale of 'enemy shares'; buyback by CPSEs yield over Rs 11,300 cr to exchequer in FY19
  • The government has garnered Rs 700 crore through the first-ever sale of 'enemy shares'

  • Enemy property refers to the assets left behind by people who migrated to Pakistan or China and are no longer citizens of India.

  • Over Rs 10,600 crore has come in from buyback of government shares by Central Public Sector Enterprises (CPSEs)

New Delhi: Sale of 'enemy shares' and buyback of stocks by Central Public Sector Enterprises (CPSEs) have together yielded the government over Rs 11,300 crore, thus helping the exchequer mop up Rs 85,000 crore from disinvestment in the current fiscal—the second-highest receipt ever.

The government has garnered Rs 700 crore through the first-ever sale of 'enemy shares' after the Cabinet in November 2018 gave its go-ahead to the Department of Investment and Public Asset Management (DIPAM) to sell such shares held in companies.

Enemy property refers to the assets left behind by people who migrated to Pakistan or China and are no longer citizens of India.

Besides, over Rs 10,600 crore has come in from buyback of government shares by Central Public Sector Enterprises (CPSEs).

Firstever sale of enemy shares buyback by CPSEs yield over Rs 11300 cr to exchequer in FY19

Representational image. Reuters.

In 2018-19, the government for the second time in a row exceeded the disinvestment target by mopping up Rs 85,000 crore as against the budget estimate of Rs 80,000 crore.

In 2017-18, the government mopped up a record over Rs 1 trillion, against the target of Rs 72,500 crore.

During the current fiscal, share sale through Exchange Traded Funds (ETFs) has yielded the highest amount of Rs 45,729 crore, followed by Rs 14,500 crore from acquisition of the government's 52.63 percent stake in REC by state-owned Power Finance Corporation (PFC).

In addition, the government has received Rs 1,929 crore via initial public offering (IPO) of five companies — MSTC, RITES, Ircon, Garden Reach Shipbuilders and Midhani.

The government has received Rs 5,218 crore from offer for sale (OFS) of Coal India, and another Rs 5,379 crore from sale of SUUTI stake in Axis Bank.

As regards the buybacks, the government has mopped up over Rs 10,600 crore. The companies which bought back the government stake include ONGC, IOC, Coal India, Oil India and NLC.

For the next fiscal, the government has set a disinvestment target of Rs 90,000 crore.

Updated Date:

Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply

also read

Rights groups, international lawyers target sponsors like Airbnb for 2022 Beijing Winter Olympics
Sports

Rights groups, international lawyers target sponsors like Airbnb for 2022 Beijing Winter Olympics

This will be Beijing's second Olympics in 14 years, following the 2008 Summer Games that were supposed to improve human rights in China.

Market roundup: Sensex falls to 49,099.99, Nifty settles at 14,529.15 amid sell-off before release of Dec GDP data
Business

Market roundup: Sensex falls to 49,099.99, Nifty settles at 14,529.15 amid sell-off before release of Dec GDP data

All the shares in the BSE Sensex closed in red on Friday with ONGC being the top loser, shedding 6.6 percent, followed by Mahindra & Mahindra, Bajaj Finserv, and Axis Bank

Tokyo Olympics 2020: Decision over foreign spectators could be made by May, says IOC president Thomas Bach
Sports

Tokyo Olympics 2020: Decision over foreign spectators could be made by May, says IOC president Thomas Bach

Organisers are yet to announce whether supporters will be able to travel to Japan for the tournament, but Bach said he expects a decision by May.