Indian Govt Postpones OIL company IPOs

The repeated postponement of GOIs stake sale in OIL companies ONGC and IOC make me conclude that this govt is attempting to Have the Cake and Eat it too.I had posted in  Indias double D conundrum about the UPA  govts difficulty in getting disinvestment funds unless they do a discount sale thanks to the high deficit politics it uses .

Not long ago ONGC boards saw a reshuffle with the current ONGC Chairman A.K. Hazarika given a lot of responsibility.

Bloomberg states

Finance Minister Pranab Mukherjee said Feb. 28 India needs to sell 400 billion rupees of stock in state-run companies to trim the budget deficit to a four-year low. His challenges include attracting investors to the world’s fourth-worst performing stock market and a 29 percent surge in crude oil in the past year, analyst Jagannadham Thunuguntla said.

In any case at least half a dozen previous GOI listings are in loss or are barely making profits … something that made the worried govt allow a partial increase in cost of coal sold by COAL INDIA its most successful IPO in recent times.


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