Modi budget brings benefits for India ECM and DCM

By Isabella Zhong, Rev Hui
17 Jul 2014

Indian capital markets are set for a boost following the publication of the first budget from the new government on July 10. ECM activity should pick up after the country raised the disinvestment target for the 2014-15 fiscal year to Rp584bn ($9.8bn). The budget also gave Indian borrowers an incentive to explore international bond markets.

The disinvestment target set out in the interim budget in February was only Rp519bn. The new target is 12.5% higher than that and most of it, or 74.3%, will be achieved by selling stakes in state-owned companies (public sector undertakings, or PSUs).

The remainder will come from selling ...

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