Edelweiss, ICICI Securities, SBI Capital and Deutsche Bank appointed for share sale in five PSUs

MUMBAI: Four investment bankers have been appointed to manage the sale of government shares in five PSU companies, people close to the development said. Edelweiss, ICICI Securities, SBI Capital and Deutsche Bank have been asked to manage the sale which is expected to happen some time this year and could raise up to Rs 10,000 crore.

The government plans to sell shares in 10 companies this year in two buckets of five companies each. Bankers selected for one basket will have to handle all the five companies in it, according to the bidding process.

The government has put Bharat Electronics (BEL), NTPC, NALCO, EIL and Hindustan Copper in one basket, while the five companies for divestment in the other basket are Oil India, Container Corp, NMDC, MMTC, and ITDC.

ET reported on July 25 that barring Deutsche Bank, no foreign bank has participated in the bids to manage the stake sale. This is a far cry from the situation that existed a few years ago when these banks used to fall over each other and local rivals for the mandates, often offering to work for free or charge fees as low as a single rupee.