Budget 2020

Government begins Wapcos IPO process, to sell 25% stake


The government has started the process of initial public offering of WAPCOS Limited where it will sell 25% stake, the department of investment and public asset management (DIPAM) said Friday.

The department has floated tenders for engaging a registrar and an advertising agency for the disinvestment process. Interested parties have been asked to make their submissions by February 24.

“The government intends to disinvest upto 25% paid up equity share capital of WAPCOS out of its shareholding of 100%, through an “Initial Public Offering” in the domestic market,” DIPAM said in the notice inviting tenders. A part of the public offering will be reserved for employees of the company.

WAPCOS Limited is a public sector enterprise under the ministry of jal shakti incorporated on June 26, 1969. The company is a technology driven consultancy and EPC organization with strong global presence in the field of water, power and infrastructure sectors.

The paid-up capital is Rs 100 crore as on 31st March, 2020, the company has achieved highest- ever revenue from operations of Rs 1,550.24 crore in 2019-20 as against Rs 1,413.09 crores in 2018-19, an increase of 9.71%. The profit before tax during the year has been Rs 212.32 crore against Rs 203.06 crore last year, an increase of 4.56%.

The disinvestment target for FY22 has been set at Rs 1.75 lakh crore. Life Insurance Corporation of India is among the key IPOs that the government is expected to bring out in the second half of the year.

In FY21, the government has kept revised estimate of proceeds from disinvestment of equity in public sector enterprises at Rs 32,000 crore. So far, two IPOs have been concluded – MAZAGON DOCK SHIPBUILDERS LTD which has fetched the government Rs 442 crore and INDIAN RAILWAY FINANCE CORPORATION LTD which raked in Rs 1,541.37 crore as proceeds. Current disinvestment proceeds stand at Rs 19,500 crore, as per DIPAM data.





https%3A%2F%2Feconomictimes.indiatimes.com%2Fmarkets%2Fipos%2Ffpos%2Fgovernment-begins-wapcos-ipo-process-to-sell-25-stake%2Farticleshow%2F80709963.cms
[ad_3]