Govt looking to offload 98.1% share in a profit-making PSU. Read to find out

New Delhi: The Centre is looking to offload its stake in a public sector undertaking (PSU) that registered a profit of Rs 7.66 crores in the financial year 2017-18. The government has invited expressions of interest (EoIs) for the strategic disinvestment of its 98.1 percent stake in the Ayurvedic and Unani medicine maker, the Indian Medicines Pharmaceutical (IMPCL).

Govt to follow two-stage process

The Department of Investment and Asset Management (DIPAM) is expected to follow a two-stage process for the strategic sale. The first round will involve inviting EoIs and shortlisting potential bidders and the second round will call for financial bids. The last date for submitting EoIs is May 18.

What is the criteria?

Whoever is selected will be required to lock in its shares for a period of three years during which they will not be able to undertake the sale of their stake in IMPCL, according to the EoI criteria and preliminary information memorandum issued by DIPAM.

Currently, Kumaon Mandal Vikas Nigam holds 1.98 percent in the firm.

IMPCL's financial health

As on March 31, 2018, the PSU had a paid-up share capital of Rs 51.98 crore, 111 regular employees and 15 contractual employees. It has 40.31 acres of land at Mohan (Almora) and 4.61 acres of land at Ramnagar.