INDIAN government representatives met Hong Kong fund managers yesterday to brief them on the sale of stakes in four state-owned companies as part of the government's economic reform drive.
About 60 potential investors attended the briefing on the four huge firms: Oil and Natural Gas Corp, the Steel Authority of India, Container Corp of India and Mahanagar Telephone Nigam.
The four corporations cover basic infrastructure needs in the emerging continent, a government representative said.
The Indian government announced in its budget last March it intended to raise 70 billion rupees (about HK$17.71 billion) from the sale of stakes in several state-owned firms. It has since opened up the sale to global fund managers in the hope of increasing liquidity in Indian stock markets.
Ministry of Finance representative Rashir Krishnamurthy said: 'We believe they are very strong companies. The idea is to have larger public participation in the floats.' The government hopes to raise 30 billion rupees of the 70 billion rupees from these four firms alone, he said.
Kleinwort Benson Investment Management director Christopher James welcomed the flotations but added the main reason for the money raising exercise was to generate additional funds for the government, not the companies. 'None of the 70 billion rupees will go to the companies involved,' he said.