India seeks advisers for minority stake sales in state-run banks, financial firms, ET BFSI
NEW DELHI – India has invited bids to nominate merchant bankers and authorized advisers to promote the federal government’s minority shareholding in choose public sector banks and monetary corporations.
The federal government is trying to undertake minority stake gross sales in state-run banks and monetary corporations by way of a suggestion on the market, based on a doc printed on Monday on the Division of Funding and Public Asset Administration’s web site, which didn’t identify the lenders.
The federal finance ministry is trying dilute minority shareholdings in Central Bank of India, Indian Overseas Bank, UCO Financial institution, and Punjab and Sind Financial institution, Reuters reported in November.
The plan to decrease the federal government’s stake in banks and monetary corporations is required to adjust to public shareholding norms mandated by the markets regulator.
The Securities and Exchange Board of India requires corporations to take care of a 25% public shareholding, however has exempted government-owned corporations from assembly these norms until August 2026.
The Indian authorities owns greater than 93% in Central Financial institution of India, 96.4% in Indian Abroad Financial institution, 95.4% in UCO Financial institution and 98.3% in Punjab and Sind Financial institution. It additionally owns an 80% stake in Financial institution of Maharashtra.
Previously, public sector banks launched certified institutional placements (QIP) to boost capital, which, in flip, lowered the federal government’s stake in state-run banks.
Service provider bankers and authorized advisers will likely be appointed for 3 years and are required to submit their bids by March 27, the doc stated.
India has ditched its formidable privatisation plans and placed on maintain a majority stake sale in a minimum of 9 state-owned models after opposition from related ministries.
As a substitute, it’s persevering with with minority stake gross sales in state-run corporations. As of February, the federal government mopped up 86.25 billion rupees ($993.2 million) by way of stake gross sales within the 2024-25 monetary 12 months.
($1 = 86.8420 Indian rupees)
(Reporting by Nikunj Ohri; Modifying by Sonia Cheema)
