Deutsche Bank, ICICI Said Among Indian Govt Divestment Advisers

Deutsche Bank AG and ICICI Securities were among firms selected to help manage the sale of the Indian government’s stakes in five state-run companies including NTPC Ltd., the nation’s largest power generator, people familiar with the matter said.

SBI Capital Markets Ltd. and Edelweiss Financial Services Ltd. also were chosen to work on the divestments, the people said, asking not to be identified as they weren’t authorized to speak before a public announcement.

The banks will help sell part of the government’s holdings in a group of companies known as “Basket Two,” which includes NTPC as well as Engineers India Ltd., Bharat Electronics Ltd., National Aluminium Co. and Hindustan Copper Ltd. India will later appoint advisers for the sale of stakes in a collection of five other companies, known as “Basket One,” that includes NMDC Ltd., Oil India Ltd., MMTC Ltd., Container Corp. of India and India Tourism Development Corp.

Disinvestment Secretary Aradhana Johri didn’t respond to call and text message to her mobile phone Wednesday.

The Ministry of Finance’s Department of Disinvestment will appoint the banks for a period of three years. The government is seeking to raise 695 billion rupees ($10.9 billion) by divesting stakes in the fiscal year ending March 31, 2016, an amount crucial to its efforts to narrow the budget deficit.

Kotak Mahindra Bank Ltd., JM Financial Ltd. and Yes Bank Ltd. were among the banks also scheduled to pitch for the mandate on Basket Two, according to the finance ministry website. SBI Capital, ICICI Securities and Yes Bank were scheduled to make presentations for Basket One on Thursday.

The government had raised 16.1 billion rupees selling shares of Rural Electrification Corp., according to the ministry website. It also raised 16.7 billion rupees through a sale of Power Finance Corp. stock in July, data compiled by Bloomberg show.

The cabinet has already approved stake sales in NTPC and Indian Oil, an official said May.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE