Power firm NHPC Ltd will kick off a $1.25 billion IPO next week in the first share sale by a state company since the Congress party's unexpectedly strong re-election in May spurred investor hopes for pro-market reforms.
Despite opposition from labour groups and leftist parties, the government is forecast by some watchers to offload roughly $5 billion a year in state shares, which could hearten a bond market worried about fiscal responsibility but do little to address a yawning deficit and $90 billion borrowing plan.
Uncertainty over how stake sale proceeds can be used also clouds the outlook for any benefit to government finances.
Despite opposition from labour groups and leftist parties, the government is forecast by some watchers to offload roughly $5 billion a year in state shares, which could hearten a bond market worried about fiscal responsibility but do little to address a yawning deficit and $90 billion borrowing plan.
Uncertainty over how stake sale proceeds can be used also clouds the outlook for any benefit to government finances.
Source url: http://in.reuters.com/article/businessNews/idINIndia-41415320090730