The disinvestment department has invited request for proposal (RFP) from merchant bankers for listing and disinvestment of Telecommunication Consultants India Ltd (TCIL).
As per the plan, the government will be divesting its 15 per cent equity in TCIL and the company will be raising funds by issuing 10 per cent fresh equity shares through initial public offering (IPO).
The move is expected to fetch the government around Rs 1,100-1,200 crore.
TCIL issue may come up around January 2020, helping the company raise the fund in this financial year only.
According to sources, the IPO may help mobilise Rs 400-500 crore, required for TCIL’s expansion plans, ongoing projects, and its US subsidiary. The 15 per cent share sale by government may fetch around Rs 600-700 crore.
This splitting of IPOs, called piggyback transactions, for its own funding needs has been approved by the Digital Communications Commission, the apex decision-making body of the Telecom Ministry.
TCIL wants to issue fresh shares of around 10 per cent, the source said.
The DIPAM rules say in case of issue of fresh equity in conjunction with the sale of the government stake (piggyback transactions) for listing, the CCEA approval will be obtained by the Ministry concerned in this case, DoT.
The Piggyback funding has already been done in the case of Kochin Refinery.
