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The ministry knows the value of the BHEL stock. It also knows the market mood !

http://www.thehindubusinessline.com/companies/article2415067.ece

BHEL disinvestment to depend on market sentiment: Patel

NEW DELHI, AUG 31: 

Timing for the BHEL follow-on public offer will depend on the market conditions and the FPO may even be deferred.

"The timing will have to be seen, depending on market conditions. If markets are where they are today, certainly we can ask the Disinvestment Department to defer it," Heavy Industries and Public Enterprises Minister Mr Praful Patel said.

The Cabinet Committee on Economic Affairs (CCEA) yesterday approved five per cent FPO in the power-equipment major.

The Department of Disinvestment (DoD) has already appointed four merchant bankers for disinvestment of BHEL, in which the government holds 67.72 per cent stake.

On the basis of the stock price yesterday, the Navratna PSU is valued at Rs 86,532 crore and the government may rake in about Rs 4,300 crore by offloading five per cent of its stake through the FPO.

Mr Patel said the disinvestment cannot be a "distressed sale. It must realise a good value".

The Finance Ministry has set up an ambitious disinvestment target of Rs 40,000 crore for the current fiscal. While the government has approved disinvestment in ONGC, SAIL, HCL and NBCC, it could mop up only Rs 1,162 crore through five per cent stake sale in the Power Finance Corporation in 2011-12.

Last fiscal, the government collected Rs 22,763 crore through sale of equity in public sector enterprises.

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