Government sold its stake of 26.12 percent in Tata Communications and raised Rs 8,846 cr

The government sold its stake of 26.12 percent in Tata Communications and raised Rs 8,846 cr from the proceeds.

Earlier, the government planned for a disinvestment amount of Rs 2.1 lakh Crore for FY21. However, the set target contracted from Rs 2.1 lakhs to Rs 32,000 Crore citing the reasons for the pandemic.

According to the statement of DIPAM secretary Tuhin Kanta, the government accomplished the disinvestment process.

Through the offer of sale of Rs 5,457 cr which is a 16.12% stake in TC, the government completed the disinvestment.

Earlier on March 19, 2021, it sold 10% to Panatone Finvest. Additionally, through the offer of sale, the government sold a 16.12 percent stake to retail and non-retail investors.

According to the reports, on January 21 the government planned to generate an amount of Rs 8,000 crore from OFS. The process began on March 15 with a price of ₹1,161 per share.

Furthermore, the total amount generated by the government by means of disinvestment is Rs 31,006 crore in the current fiscal year.

The process of disinvestment refers to the sale of PSU shares by the government.

In the budget announcement, Finance Minister Nirmala Sitaraman proposed to sell IDBI, BPCL, and Air India, among others. Moreover, they decided to privatize two PSB and one general insurance company in the year.

Except for the 4 strategic areas, disinvestment of other PSUs of the sectors will take place. Last year the government announced the disinvestment of at most four PSU in strategic areas.

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