Approximately 17 banks are vying for the job of managing the share sale of state-run Steel Authority of India Ltd., including Goldman Sachs(NYSE:GS), Bank of America (NBSE:BAC) and Morgan Stanley (NYSE:MS).
This is a continuation of the divestation of assets by the Indian government in order to raise capital to pay down its debt.
Presentations from the many banks will be made on August 31 and September 1, according to Steel Secretary Atul Chaturvedi.
Among the other notable banks competing for the job are Deutsche Bank AG (NYSE:DB), HSBC Holdings Plc (NYSE: HBC) and Nomura Holdings Inc. (NYSE:NMR).
Chaturvedi said he wants a minimum of five banks managing the share sale.
Short term there isn't much value for the bankers, as the fees collected are extremely small. They participate in hopes of winning more investment bank work in India.
The Indian government has a goal of raising $8.5 billion through the sale of assets for the year.
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