Faced with the daunting task of a higher sell-off target, the DIPAM is mulling offer for sale (OFS) for number of CPSEs like Coal India, NBCC, NLC and Hudco, official sources said.

In all these CPSEs there is a scope for further government stakes to be lowered, said the sources, adding that the main purpose was to raise the funds for meeting the target of Rs 1.05 lakh crore.

The sources said in case of Coal India, while the government is looking at mopping up Rs 5,000-Rs 7,000 crore, for Hudco, the proposed stake sale through OFS could be 10-15 per cent.

Last November, the government had done an OFS in Coal India in which it sought to reduce its ownership by 3 per cent by selling to both institutional and retail buyers garnering Rs 5,500 crore.

Housing And Urban Development Corp Ltd (Hudco) share price is at Rs 38.90 and government holds 89.81 per cent as on June 2019. NBCC India share price is at Rs 54.75 and government holding is 68.18 per cent.

In Neyveli Lignite Corporation (NLC), the share price is Rs 65.65 and 89.91 per cent is held by Finance ministry. For Coal India, the government holds 70.96 per cent and its share price is ruling at Rs 231.70

Sources said that OFS is going to be one of the key tools used by DIPAM to meet the higher target of Rs 1.05 lakh crore from the earlier Rs 90,000 crore as announced in the Union Budget.

Earlier DIPAM had invited merchant bankers for divesting 16 per cent of Ircon out of its 89.18 per cent shareholding in the railways subsidiary.

In case of Ircon, the government currently holds 89.18 per cent post an OFS last fiscal where it fetched Rs 466.70 crore to the government by selling 10.53 per cent.

The government now wants to go for the OFS in Ircon to lower its stake further as the Minimum public shareholding norm by Sebi is 25 per cent in listed entities and also raise funds to meet the target.