Government proposing to sell up to 25% stake in four defense companies through IPO

The Government of India proposes to sell up to 25% stake in four state-owned companies under the control of the defense department via an initial public offering.
 
The government is considering selling stakes in Mazagon Dock, Bharat Dynamics, Garden Reach Shipbuilders & Engineers and Mishra Dhatu Nigam. It has invited proposals for the IPO by 3 pm on August 18.

Prime Minister Narendra Modi’s government has been divesting its stake in several public and private companies in order to meet its ambitious target to earn Rs 7,250 crore during FY18.
 
In FY17, the government raised Rs 46,247 crore via disinvestment - the highest amount ever earned by sale of equity stake in PSUs. The government has sold stakes in Hindustan Copper via a recently ended offer for sale, Cochin Shipyard, HUDCO, L&T (held through SUUTI) and Dredging Corporation in FY18.
 
The government is also likely to sell 10% stake each in three major state-run railway companies viz.

IRCTC, IRCON and IRFC through IPOs. And the government is also seeking to sell up to 10% stake each in the capital goods major Bharat Heavy Electricals Ltd. and energy company Oil India Ltd. In addition, the government is selling its equity stake in companies held via Specified Undertaking of Unit Trust of India (SUUTI) in open market transactions.