It must be tempting for Indian officials to link the success of last week’s Rural Electrification Corp follow-on offering to the structure they designed for the deal. It certainly worked better than a similar deal a couple of weeks earlier for NTPC.
But that would be a mistake. Although REC ended up with a decent result, the process is far from perfect.
Lessons were clearly learned from the NTPC fiasco, but the French auction structure leaves any deal open to the same problems. In a system where the highest bids
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: firstname.lastname@example.org
To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: email@example.com or find out more online here.