Govt Decision On Psu Stake Hailed
Investment bankers are elated at the cabinet's decision to offload upto 74 per cent in PSUs shortlisted for strategic sale. They feel there will be more potential buyers now willing to pay a higher price for a contolling stake.
The cabinet has unequivocally committed to offload more than 51 per cent stake in the four PSUs selected for strategic sale in the first batch - ITDC, Modern Foods, Kudremukh Iron Ore Company Ltd (KOICL) and Balco.
"The government's move to offload more than 50 per cent to strategic partners is heartening as 51 per cent stake has been the psychological key for many potential buyers," said Shaun Browne, HSBC Capital Markets India "It was almost impossible to find a strategic buyer for less than 51 per cent," said a Deutsche Morgan Grenfell official.