India is planning to sell small stakes in state-owned companies, including the world's largest coal miner and Asia's largest zinc producer, according to people familiar with the matter, riding a stock market boom and ending the fiscal year. Trying to boost earnings in the final quarter.
Government intends to purchase his 10% from Coal India Ltd., Hindustan Zinc Ltd., Rashtriya Chemicals and Fertilizers Ltd. from his 5%. The sale will be through a so-called offer-for-sale mechanism, said the people, who asked not to be identified as details have not yet been released. A total of five companies could be selected, including a listed company from the Ministry of Railways, they added.
Bloomberg calculations show that at current prices, sales at the lower end of the government range could be around 165 billion rupees ($2 billion). With domestic stocks hitting record highs on the back of healthy economic growth, the money raised will help Prime Minister Narendra Modi's government finance a subsidy bill.
India said he had budgeted Rs 650 crore from such asset sales in the year to March, but so far has made his 3rd step in the target mainly through the IPO of Life Insurance Corp. Raising his 1 strong for a minute. $2.7 billion in May. A total of roadshows were launched to gauge investor interest in the stock sale. A Treasury spokesman could not be reached for comment.
Coal India is up around 6% over the past year, while Rashtriya Chemicals is up 58%, beating benchmark S&P BSE Sensex by around 6%.