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DIPAM once again extends deadline for disinvestment of MIDHANI, PDIL

The government has once again extended the last date for the disinvestment of minority stake in MIDHANI and PDIL through OFS

PSU Watch Bureau
  • DIPAM has extended the last dates for the submission of bids by merchant bankers, selling brokers and legal advisors for MIDHANI and asset valuers for PDIL

  • The government had initiated the process for the disinvestment of 10 percent equity capital in MIDHANI through OFS in March

New Delhi: In view of the lockdown put in place to contain the spread of Coronavirus, the government has once again extended the last date for the disinvestment of minority stake in MIDHANI and PDIL through OFS (Offer for Sale). A notification on the DIPAM (Department of Investment and Public Asset Management) website extended the last dates for the submission of bids by merchant bankers, selling brokers and legal advisors for MIDHANI and asset valuers for PDIL.

While in case of MIDHANI, the deadline for the submission of proposals has been extended from May 15 to May 27, in the case of PDIL, the last date has been extended from May 18 to May 28.

MIDHANI disinvestment through OFS was initiated in March

The government had initiated the process for the disinvestment of 10 percent equity capital in defence PSU MIDHANI through OFS in March, as was reported by PSU Watch. The authorised share capital of MIDHANI is Rs 200 crore and the paid-up equity capital is Rs 187.34 crore as on March 31, 2019. The government holds 74 percent of the equity of MIDHANI. The face value of each equity share is Rs 10. MIDHANI's Profit after Tax for fiscal year 2018-19 stood at Rs 131.04 crore. As on March 31, 2019, it has a net worth of Rs 834.71 crore.

PDIL disinvestment was approved in 2016

Ironically enough, PDIL had been a loss-making company at the time a disinvestment plan for the PSU was approved, however, in the aftermath it has revived its fortune and rekindled its growth story. PDIL had been incurring continuous losses from 2014-15 to 2016-17, but at the end of financial year 2018-19, it also paid its highest-ever dividend to the government. The disinvestment plan for PDIL was approved in 2016 and since FY2017-18, it has been making profits. In FY2018-19, the PSU registered the highest-ever Profit after Tax (PAT) of Rs 30.36 crore, highest-ever turnover of Rs 131.50 crore, highest-ever Revenue from Operations of Rs 116.50 crore.

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