FinMin’s smart sell-off arithmetic
No surprises then, why the department of disinvestment has fast forwarded the issue over other smaller ones. The department seems intent to go ahead with the issue in the New Year. Within five days of receiving a Cabinet approval for the sale it has advertised for merchant bankers for the transaction, in the newspapers.
There are several reasons why an NTPC issue is useful. December is the time when most global fund managers shut shop for Christmas and year-end squaring up, leaving very little money on the table. It is also the time when Indian companies pay their third instalment of advance tax, so demand for cash is already at a high with most banks borrowing an average of Rs 1,00,000 crore from the RBI. Also disinvestment secretary M H Khan will retire at the end of November. All said and done it takes some time for a new officer to get the details of the technical work like disinvestment. Plus in a globally uncertain market with the US fiscal
Be the first to comment.