Veil of secrecy around Suuti stake sale

The Department of Investment and Public Asset Management (Dipam) has been maintaining an added layer of secrecy around its stake sale in firms that are part of the Specified Undertaking of the Unit Trust of India (Suuti). Its intention to sell stake in Larsen & Toubro, for instance, was disclosed the previous evening. This gave investment bankers just about 17 hours to reach out to institutional investors. While roadshows for future stake sales are being done on an ongoing basis, bankers remain clueless about the timing of the next sale. “While this ensures there were no wild fluctuations in the run-up to the stake sale, bankers will be under pressure, especially while handling sales of over Rs 5,000 crore,” said a banker, on the condition of anonymity.