According to people familiar with the situation, India intends to sell small stakes in state-run businesses, including the largest coal miner in the world and the largest zinc producer in Asia, in order to benefit from a bullish stock market and increase revenue in the final quarter of the fiscal year.
According to the people, who requested anonymity because the specifics have not yet been made public, the government plans to sell 5%–10% of its shares in Coal India Ltd., Hindustan Zinc Ltd., and Rashtriya Chemicals and Fertilizers Ltd. under the so-called offer-for-sale procedure. Five businesses in all, including one registered under the railway ministry, could be chosen, they added.
According to calculations by Bloomberg, sales at the lower end of the range could bring in the government $2 billion at the current price. The money raised will assist Prime Minister Narendra Modi’s administration in paying its subsidy bill, which has increased significantly in part due to the conflict in Ukraine and local stocks are at record highs, supported by a healthy pace of economic growth.Just over a third of the target has been raised so far, mostly because to the $2.7 billion initial public offering of Life Insurance Corp. in May, which India had planned for Rs 65,000 crore from such asset sales in the year up to March. According to the sources, roadshows have begun to gauge investor interest in the stake sales. It was impossible to reach a Finance Ministry representative for comment.
We are sorry that this post was not useful for you!
Let us improve this post!
Tell us how we can improve this post?