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. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

India sticks with reform

India's Congress-led coalition government has forged agreements with leftist allies to maintain economic liberalization and reforms initiated by the previous administration. But the left has forced it to limit new openings for foreign investment and queried some privatization strategies.

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 it has familiar faces that investors find reassuring.

"This government has the best economic thinkers in the country and they know what needs to be done," says Sanjay Nayar, CEO, Citigroup India, which has invested $1 billion in capital in the country.

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.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

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

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, 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

LOGIN NOW

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