India plans $880 million of share sales in March

MUMBAI Thu Feb 21, 2013 8:36pm IST

Labourers work inside a steel factory on the outskirts of Agartala, Tripura, November 6, 2009. REUTERS/Jayanta Dey/Files

Labourers work inside a steel factory on the outskirts of Agartala, Tripura, November 6, 2009.

Credit: Reuters/Jayanta Dey/Files

Stocks

   

MUMBAI (Reuters) - India plans to raise about $880 million next month cutting its stakes in two state companies, sources with direct knowledge of the matter said, a move that will help the government tackle the budget deficit.

Asset sales are a key part of the government's plan to cut the deficit to 5.3 percent of gross domestic product for the fiscal year to end-March, from 5.8 percent in 2011/12, to avoid a credit downgrade.

The government was expected to sell a 10.82 percent stake in steelmaker Steel Authority of India Ltd (SAIL.NS) via a share auction in the third week of March, three sources with direct knowledge told Reuters on Thursday.

The SAIL stake is worth about $620 million at current prices and its sale would leave the government with a 75 percent stake.

The government also plans to sell a 12.15 percent stake worth about $260 million in National Aluminium Co Ltd (Nalco) (NALU.NS) early next month, two other sources said.

All the sources declined to be named because they are not authorised to speak to the media before a public announcement.

Neither Nalco nor SAIL was available to comment.

(Reporting by Sumeet Chatterjee; Editing by Dan Lalor)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

RBI Policy Review

RBI Policy Review

RBI keeps rates on hold, warns on inflation  Full Article 

China iPhone Sale

China iPhone Sale

China regulator approves Apple's iPhone 6 for sale in China  Full Article 

Cleanliness Drive

Cleanliness Drive

Modi orders officials to clean loos on Gandhi's birthday.  Full Article 

Bid to Boost Trading

Bid to Boost Trading

RBI takes small steps to deepen markets.  Full Article 

Car Recall

Car Recall

Maruti Suzuki says to recall 69,555 cars.  Full Article 

China Factory Data

China Factory Data

China final HSBC PMI steady in September on stronger global demand but risks remain  Full Article 

Oil Demand

Oil Demand

India's thirst for oil grows even as China cuts back  Video 

EBay Divests PayPal

EBay Divests PayPal

EBay to spinoff PayPal in 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage