The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Government shares sell-off boosts capital markets activity

India's bond and equity markets spurted into action last month as the government announced over $3 billion-worth of sales of shares in six companies. Indian companies and banks will also tap the market for another $2 billion, about half of which will be foreign currency debt. In addition, the Asian Development Bank closed a $110 million rupee bond, the first local currency bond by a multilateral bank.

The government's sale includes offerings of residual holdings in privatized companies Indian Petrochemical Corporation (IPCL), Computer Maintenance Corporation (CMC), and Indo-Burmah Petroleum (IBP).

Minority stakes in three other companies are on offer – 10% each in Oil and Natural Gas (ONGC) and Gas Authority of India (GAIL) and 20% in Dredging Corporation. The ONGC sale is India's largest equity offering to date, estimated at $2.2 billion.

Elections are due in April and the government hopes to leave office with a tidier balance sheet and to earn a political dividend from middle class voters. The shares are on sale in the local market and small investors can buy them at a 5% discount.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree