India has raised about $3.6 billion by selling a 10 percent stake in state-run Coal India Ltd in the largest ever equity deal in the local market, giving a welcome boost to the government‘s faltering divestment drive.
The share sale will move the government closer to the still distant target of raising $10 billion by selling minority stakes in state-owned companies to trim the fiscal deficit to a seven-year low by the end of March.
Until now, the government had raised barely $300 million.
The strong investor response to the Coal India issue is expected to bolster New Delhi’s plans to offload shares in other state firms including Oil and Natural Gas Corp and Power Finance Corp Ltd.
Overseas and local portfolio investor demand for Coal India shares exceeded supply, in a vote of confidence in recovery in Asia’s third-largest economy, and in its growing demand for energy as industrial production increases.
via Record Coal India share sale boosts privatisation drive | Reuters.
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