The government has come out with a fresh information memorandum for strategic stake sale of helicopter services provider Pawan Hans wherein bidders need to have a minimum net worth of Rs 500 crore.
The latest memorandum has been issued days after the government withdrew the previous note apparently due to a tepid response from investors.
Pawan Hans is a joint venture between the government and state-owned ONGC. Under the disinvestment proposal, the government plans to offload its entire 51 percent stake in the company.
According to the 113-page Preliminary Information Memorandum, that includes 14 annexures, the bidder should have a minimum net worth of Rs 500 crore.
In the case of consortium also, the net worth criteria would remain the same. They should set up a special purpose vehicle and each members should have at least 20 percent equity share capital.
For entities which are air transport service operators, and hold up to 51 percent equity share capital of the consortium, the thresholds pertaining to net worth and profitability would not be applicable, the memorandum said.
A profit-making entity, Pawan Hans had debt outstanding of more than Rs 45 crore as on Jan. 31, 2018.
This includes term loan facility availed from NTPC in 2012 at a 6 percent per annum rate of interest to be repaid in 120 equated monthly installments ending in March 2022.
The loan -- for purchase of 1 new Dauphin N3 helicopter -- is secured by hypothecation of the helicopter in favour of NTPC, as per the memorandum.
Pawan Hans had contingent liabilities to the tune of Rs 610.44 crore as on Jan. 31 this year. This includes an amount of Rs 454.31 crore related to demand notice for payment of VAT.