State companies may be allowed to buy back government stakes

India may allow state-owned companies to buy back shares held by the government, as it struggles to meet a target for asset sales after demand for stock offerings dried up. “Some of these companies are cash rich and their cash hoard is bigger than their annual turnover,” Disinvestment secretary Mohammad Haleem Khan said in an interview in New Delhi. “They have their minds open to all options available to non-state companies.” The disinvestment department is considering other alternatives, including selling the government’s stakes through so-called block trades, said Khan, who assumed the post in June.

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