The race for FDI
THE RESOUNDING SUCCESS of the first sale of government shares under India's new United Progressive Alliance government last month provided a welcome boost to the coalition's confidence in its ability to deal with international financial markets.
The $1.2 billion dollar initial public offering by National Thermal Power, India's largest power producer, was oversubscribed more than 12 times and shares priced at the top end of the indicated range on October 14. Half of the shares on offer were from the government's stake. The portion of the offering reserved for institutional investors was oversubscribed 16 times and reportedly included bids by Citigroup, HSBC, Fidelity, Templeton, Merrill Lynch, Janus and Morgan Stanley.
India's new coalition, led by the Congress party, might have a new dynamic – because it leans on parties of the left for support, unlike the previous government, which relied on the right – but...
