February 23, 2017 / 3:28 PM / 5 months ago

India to raise about $250 million from Bharat Electronics share sale

2 Min Read

MUMBAI (Reuters) - India will raise about 16.7 billion rupees ($250 million) from its sale of a 5 percent stake in state-run Bharat Electronics Ltd (BAJE.NS), the government said on Thursday, part of an asset sales programme to help fund a fiscal deficit.

The government, which owned 74.41 percent of the manufacturer of equipment for communication, radar and naval systems, offered the shares this week in sale that ended on Thursday at a floor price of 1,498 rupees each.

It said the share offer was oversubscribed by 260 percent with strong participation from both retail and institutional investors.

The government has budgeted for a total of 455 billion rupees ($6.8 billion) from asset sales in the current fiscal year that ends in March. It has raised about 377 billion rupees so far, excluding the Bharat Electronic's sale.

Earlier this month, a government agency sold a $1 billion stake in ITC Ltd (ITC.NS) to state-run Life Insurance Corp (LIC). [nL4N1FS1X1]

LIC, which typically invests heavily in government divestments, also bid in the Bharat Electronics sale, according to Thursday's government statement.

($1 = 66.6850 rupees)

Reporting by Abhirup Roy and Devidutta Tripathy; editing by David Clarke

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