Overseas investors, including sovereign funds from Abu Dhabi and Kuwait, have assured the government they would buy up the proposed 5% stake sale in Oil & Natural Gas Corp, setting the pace for accelerated divestment in cash-rich companies by a funds-starved government.
Representatives of various funds from Singapore, the Middle East and London, who met finance ministry officials last week, have informally 'underwritten' the stake sale in the state-run company that could help the government raise about Rs 12,000 crore at current market valuations, three people familiar with the discussions between the government and investors said.
Officials of Kuwait Investment Authority and Abu Dhabi Investment Authority were part of the team that discussed the issue with finance ministry bureaucrats. Representatives from CalPERS, the giant California pension fund, and Prudential, are also believed to have attended the meeting but this could not be immediately confirmed.
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