Govt share sale gets poor global response


The Government’s share sale plans in NMDC, SAIL and CIL get poor response from global investment bankers.

In the Rs 22,500-crore share sale of Coal India that closed last week, four foreign investment banks — Credit Suisse First Boston (CSFB), Deutsche Bank, Bank of America Merrill Lynch and Goldman Sachs— advised the government. Similarly, in the SAIL stake sale, three foreign investment bankers had taken on the mandate to sell the government’s holdings.

While the government had intended to appoint up to five investment bankers for the proposed NMDC transaction, only four Indian firms — SBI Caps, Kotak Mahindra Capital, I-Sec and Axis Capital have put in their bids. Technical bids were opened on Tuesday and financial bids will be opened on Wednesday.