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The Indian government has unveiled a significant move to sell more than 2.91 lakh shares in 84 companies categorized as "enemy property," aiming to attract interest from a diverse range of buyers, including individuals, corporations, NRIs, Hindu Undivided Families (HUFs), Qualified Institutional Buyers (QIBs), trusts, and companies. This strategic decision is part of the government's broader initiative to dispose of assets associated with individuals who migrated to Pakistan and China during the period from 1947 to 1962. The first tranche, encompassing around 1.88 lakh shares in 20 companies, is open for bids until February 8, with a focus on promoting wider participation in the share sale.
The assets under consideration are termed "enemy property," referring to holdings left behind by individuals who acquired citizenship in Pakistan and China. A detailed public notice outlines the government's intention to divest 2,91,536 shares across 84 companies, with the initial tranche focusing on 20 selected companies and 1,87,887 shares.
The Department of Investment and Public Asset Management (DIPAM) has specified the bidding process. It requires interested buyers to submit their bids indicating the number of shares and corresponding bid prices. The government will set a reserve price for each company's shares, keeping it confidential from prospective bidders. Bids falling below the undisclosed reserve price will be rejected.
The Custodian of Enemy Properties for India (CEPI) currently holds 2,91,536 shares in various companies, overseeing the proposed sale. The disposal of these shares aligns with the government's broader policy framework established in 2018, where SBI Capital Markets has been appointed as the merchant banker and selling broker for this purpose.
The government's emphasis on disinvesting "enemy property" shares comes as part of its ongoing efforts, as disclosed by Union Minister of State for Home Ajay Kumar Mishra. Last month, he informed Parliament about the successful sale of shares valued at more than Rs 2,709 crore. The sales are executed based on recommendations from a high-level committee, considering factors such as quantum and pricing. The proceeds from these sales are subsequently deposited into the Consolidated Fund of India.
This landmark move not only showcases the government's commitment to asset management but also underscores its strategic approach to financial planning and resource utilization through the systematic divestment of "enemy property" shares in the country.
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