Govt to complete sale of HLL Lifecare, PDIL after elections - source
Informist, Wednesday, May 29, 2024
By Sagar Sen and Priyasmita Dutta
NEW DELHI – The finance ministry is aiming to conclude strategic disinvestment of HLL Lifecare Ltd and Projects & Development India Ltd soon after the new government comes to power in June, a senior official said. The government intends to sell its entire stake in HLL Lifecare and Projects & Development India and has already sought financial bids from prospective investors.
"Once the elections are over and the new government is formed, we will open the financial bids. We expect to get around 5 bln rupees from the sale of these two companies," the official told Informist. The official, however, did not give the names of the bidders.
The disinvestment of HLL Lifecare will sail through smoothly, but there may be a glitch in Projects & Development India's privatisation, a second official said.
Disinvestment Secretary Tuhin Kanta Pandey said in March 2022 that the government had received multiple bids for the privatisation of HLL Lifecare and Projects & Development India.
The Centre invited initial bids to divest entire stake in HLL Lifecare and Projects & Development India in December 2021 and provided access of virtual data room to bidders in June 2022.
HLL Lifecare is involved in the manufacture and marketing of contraceptives, women's healthcare products, and hospital supplies. The company reported a net profit of 513.8 mln rupees in 2022-23 (Apr-Mar), down 87% from 4.06 bln rupees in the previous year.
Projects & Development India is an engineering and consultancy company. The company had reported a net profit of 35.8 mln rupees in 2022-23, down 67% from 108.1 mln rupees in the previous year.
In the Interim Budget, the finance ministry had projected receipts from divestment and asset monetisation at 500 bln rupees for the current financial year started April. End
