India, which holds stakes in leading coal miner Mammoth Coal and Asia’s largest zinc producer Hindustan, is reportedly planning to sell off part of those holdings and one other to boost revenue amid stock market positivity.

Individuals familiar with the situation but who requested anonymity told Bloomberg late last week that the government is looking to sell 5%-10% in Coal India, Hindustan Zinc, and Rashtriya Chemicals and Fertilizers via an “offer-for-sale” mechanism. Five firms could be chosen under the scenario, including a listed entity under the railway ministry.

Given current prices, the wire report said, sales could conservatively bring about 165 billion rupees, or $2 billion. As local stocks are at a record high, the cash raised by the sale could aid Prime Minister Narendra Modi’s administration fund a subsidy bill that has surged in part because of the war in Ukraine, Bloomberg added.

India had already budgeted 650 billion rupees from asset sales over the fiscal year through March, but so far had raised just over one-third of its goal.

Source: Bloomberg