India recently started on its strategy to acquire INR400 billion through sales in assets starting this fiscal year. The country's plan kicked off with the sale of a stake in trading fim MMTC Ltd.
The Indian government plans to do the same in other companies including Indian Oil Corp., Coal India Ltd., and Bharal Heavy Electricals Ltd. The government will do this in hopes of reducing its fiscal debt, said Minister P. Chidamdaram, India's Finance Minister. He said that this is the conutry's finance ministry's top priority.
The 9.33 percent stake sale in MMT valued about $96 million based on the bid price's minimum value is seen as a huge boost for the Indian government after Fitch, a ratings agency, indicated its approval of efforts to cut the deficit.
India owns almost all of MMTC, with 99.3 percent within the country's ownership. The government offered 93.3 million shared for INR60 per share minimum.
Join the Conversation