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Indian Govt Appoints 4 Merchant Bankers For BHEL FPO

The Indian government has appointed four merchant bankers - Morgan Stanley, DSP Merrill Lynch (Bank of America), ICICI Securities and Kotak Mahindra Capital - for Bharat Heavy Electricals Ltd., or BHEL's follow-on public offer.

The sale of five percent stake through this FPO is expected to garner over $1 billion or around Rs.4,700 crore for the government. The FPO is expected to hit the market during the Diwali period.

The proposed share sale in BHEL is part of government's ambitious programme to garner Rs.40,000 crore through disinvestment in the current fiscal.

At the end of June quarter, the government held 67.72 percent stake in BHEL.

The government has mopped up more than Rs.1,100 crore by divesting five percent equity in Power Finance Corporation Ltd. (PFC) in the current fiscal.

In the last financial year, disinvestments fetched in Rs 22,762.96 crore, much lower than the target of Rs.40,000 crore.

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