MUMBAI India will raise about 16.7 billion rupees ($250 million) from its sale of a 5 percent stake in state-run Bharat Electronics Ltd (BAJE.NS), the government said on Thursday, part of an asset sales programme to help fund a fiscal deficit.The government, which owned 74.41 percent of the manufacturer of equipment for communication, radar and naval systems, offered the shares this week in sale that ended on Thursday at a floor price of 1,498 rupees each.It said the share offer was oversubscribed by 260 percent with strong participation from both retail and institutional investors.The government has budgeted for a total of 455 billion rupees ($6.8 billion) from asset sales in the current fiscal year that ends in March. It has raised about 377 billion rupees so far, excluding the Bharat Electronic's sale.
Earlier this month, a government agency sold a $1 billion stake in ITC Ltd (ITC.NS) to state-run Life Insurance Corp (LIC). [nL4N1FS1X1]
LIC, which typically invests heavily in government divestments, also bid in the Bharat Electronics sale, according to Thursday's government statement. ($1 = 66.6850 rupees)
(Reporting by Abhirup Roy and Devidutta Tripathy; editing by David Clarke)
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Updated Date: Feb 23, 2017 22:18:11 IST