HLL divestment plan in full swing

The official procedures for offloading Union government stakes in HLL Lifecare Ltd, headquartered in the State, are reported to be progressing in full swing.

Contrary to the assurance given to to a trade union delegation by Union Finance Minister Arun Jaitley in New Delhi that the government had dropped the disinvestment plan, an asset valuer, transaction adviser and legal adviser, all appointed by the government, are reported to be working overtime to complete their assigned tasks in a time-bound manner.

The transaction adviser is giving shape to the preliminary information memorandum (PIM). The PIM would set the framework for inviting expression of interest from potential bidders. Bidders who meet the eligibility criteria fixed for the deal alone would be selected to participate in the process.

The NITI Ayog had recommended that “100 per cent of the government’s equity in HLL Lifecare Ltd may be sold via a two-stage auction process.” It had also recommended that the vaccine venture and Medipark, which are of strategic importance and also serve a public purpose, be hived of as separate Special Purpose Vehicles and retained in the public sector itself.

The reserve price for shedding the government stakes in the company would be fixed by an Inter-Ministerial Group and it would be maintained in strict confidence. On completing the procedures, the transaction adviser would get 0.43% of the sale proceeds remitted to the Union government as service charge. An earnest effort is being made to mop up maximum returns from the sale of the PSU, sources said.

Going by the pace in completing the procedures, it has become sure that the government would complete the process as decided earlier, sources said.