Government Seeks List Of Bidders For Coal India, ONGC Stake Sale

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Government Seeks List Of Bidders For Coal India, ONGC Stake Sale The Narendra Modi-led government has asked investment bankers, managing stake sales in Coal India and ONGC, to provide the list of bidders. This will provide a hint about how much the investors are likely to bid in the asset-sale programme. Coal India is India's largest coal miner and ONGC is the country's largest hydrocarbons explorer.
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According to the sources aware of the developments, the Centre is aiming to raise Rs 38,000 crore, or 87% of the amount budgeted from disinvestment in the period between early to mid-December.

As bids are a function of the market price on the previous day, the directive of the BJP government has confused the investment bankers. It is important to note that, investors never confirm their orders in advance. Apart from this, local investors submit their bidding applications right before the issue closes.

In a bid to sell the central government’s 10% stake in Coal India, seven foreign and local investment bankers have been appointed by the central government. The list includes Bank of America-Merrill Lynch, Goldman Sachs, Credit Suisse and Deutsche Bank, SBI Capital Markets, Kotak Mahindra Capital and JM Financial.