HSBC Holdings Plc and UBS AG are among 11 banks competing to manage India’s sale of a 10 percent stake in state-owned Engineers India Ltd.
Kotak Mahindra Capital Co. and Enam Securities Pvt. also submitted bids for arranging the deal, according to a document posted on the Department of Disinvestment’s website today. The government last month invited banks to make their bids by a deadline yesterday, and plans to pick as many as four, the department had said.
Banks are competing to work for Prime Minister Manmohan Singh’s administration as it seeks to sell stakes in companies including Coal India Ltd. to raise a record 400 billion rupees ($8.9 billion) this fiscal year. As many as 20 firms submitted pitches last week to help arrange the sale of Coal India, expected to be the nation’s largest IPO.
Shares of Engineers India fell 3.7 percent to 449.20 rupees in Mumbai trading today. The stock has climbed 74 percent this year, compared with a 1.8 percent drop in the benchmark Sensitive Index.
The government owns 90.4 percent of Engineers India, which provides design and engineering services for petroleum, power and fertilizer companies.
ICICI Securities Ltd., IDFC Capital Ltd., Avendus Capital Pvt., SBI Capital Markets Ltd., IDBI Capital Market Services Ltd., Edelweiss Capital Ltd. and Centrum Broking Pvt. were the other investment banks that bid to manage the sale, according to the statement.