Boy

             Strong market growth has investors lining up to buy new stocks
             On January 2nd, India's Disinvestment Ministry called upon the five leading investment banks operating in India – Bombay-based Kotak Mahindra Bank and ICICI Securities, Morgan Stanley, Merrill Lynch, and HSBC. The banks were overwhelmed by the good news that they received. The government wanted them to take responsibility of the sale of 10% of the shares of two wholly state owned giants: the $8 billion oil explorer Oil & Natural Gas Corp. (ONGC) and monopoly gas transporter Gas Authority of India Ltd. (GAIL). Within two days, the banks divided the two stocks to be led by Kotak and HSBC. By the next day the banks announced that the auction of the two state owned companies shares would take place in March. This could be in biggest public offering from the government; bringing $2.5 billion in government reserves.
             The fast process of the government was unexpected for the bankers. Because, previously the government had been known to take a very slow course of actions on such matters. "It's a breakthrough in the mindset of government. It'll push not just the IPO market, but privatization too," says Uday Kotak, vice-chairman of Kotak Mahindra Bank. What he means is that not only to stress more on IPO (Initial Public Offering), which is a company's first sale of stock to the public, also referred to as "going public", but it will allow more transferring, selling or divesting of government or state-owned companies or assets to private ownership. This privatization will lead to more stable economy for India. The investors will have more choice in what to invest and will receive generous profits as a result.
             It is a good time to invest in India's market. The gross domestic product, the total value of all the good produced in the nation, is second only to that of China. This market growth will result in private and state-owned companies t...

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