Stock markets are eyeing the disinvestment target in the Union Budget. Since 2020, the government’s disinvestment has been less than the target set in the Union Budget. On February 1, the government can set a practical target for disinvestment. This may fall short of the disinvestment target set in the Union Budget 2022 and 2023. UBS has said in its report that so far the government has been able to collect only Rs 9,000 crore from disinvestment in this financial year. This is much less than the target of Rs 50,000 crore.
Little hope of increasing disinvestment target
In this financial year, the government has sold its stake in GIC, Cochin Shipyard and Hindustan Zinc. The government has used the Offer for Sale (OFS) route for this. Apart from this, the government has received money from the sale of stake in the Specified Undertaking of Unit Trust of India. Analysts believe that the government will not set a big target for disinvestment on February 1. Most analysts believe that the target can be between Rs 30,000-60,000 crore.
A target of Rs 30000 crore can be fixed
Foreign brokerage firm Nomura has said that the government can set a target for disinvestment as high as the current financial year. UBS says the government’s trend of reducing the disinvestment target may continue in Union Budget 2025 as well. The government can set a target of Rs 30,000 crore. If this happens, it will be the fifth consecutive year when the government’s disinvestment target will be reduced.
Focus will be on these companies
UBS has said that in the next financial year the government’s focus may be on selling stake in companies like NMDC Steel, IDBI Bank, Shipping Corporation and BEML. These companies can make a big contribution in achieving the disinvestment target of the next financial year. Earlier this month, Moneycontrol had reported that the process of due diligence is going on for IDBI Bank. After this, the government will invite bids from potential buyers to sell 60.7 percent stake in IDBI Bank.
Big decline in these shares in the last six months
IDBI Bank shares closed at Rs 79.70, up 3.79 per cent on January 27. This stock has fallen 23 percent in the last six months. Shares of NMDC Steel fell 3.89 per cent to close at Rs 38 on January 27. This stock has fallen by about 34 percent in the last six months. Shipping Corporation’s shares crashed 4.97 percent on January 27. This stock has fallen 34 percent in the last six months. BEML shares fell 5.56 per cent to close at Rs 3,435 on January 27. This stock has fallen by about 26 percent in the last six months.