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"Combining all the three together is the best option. But it is more likely that the strategic sale of equity and public offer may happen first. The international equity offering (ADR) can happen subsequently," said the Disinvestment Secretary, Mr Pradip Baijal.

MUMBAI, July 8

THE Government is likely to offload its equity stake in National Aluminium Company (Nalco) first through a strategic sale and public offer, and subsequently through an international offering.

The Cabinet was expected to take a decision on the timing and sequence of the sale processes within a week, Mr Pradip Baijal, Secretary, Ministry of Disinvestment, said here. Mr Baijal, however, said his Ministry was in favour of all three happening simultaneously to ensure the best price for the stake.

"Combining all the three together is the best option. But it is more likely that the strategic sale of equity and public offer may happen first. The international equity offering (ADR) can happen subsequently," the Disinvestment Secretary told newspersons after addressing a seminar on `Disinvestment of PSUs: A major breakthrough' organised by the Indian Merchants' Chamber here on Monday.

Mr Baijal also said that the disinvestment of HPCL and BPCL would inevitably be separate. "It is not easy. Until now, the Government and these companies had an incestuous relationship. There are several issues...hundreds of roadblocks. It will take some time to sort them out," he said.

He said the department was considering management buy-outs in a couple of cases. "We are trying to work out a structure for management buy-outs in Engineers India Ltd and Engineering Projects Implementation Ltd," he stated.

Mr Baijal said even though management buy-outs were being considered, no public sector undertaking would be sold unless the full value of the equity could be realised. "We cannot have populist solutions for economic problems," he said.

The Disinvestment Secretary believes the equity market is the best judge of the worth of each company.

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