Shares in Oil India dropped 1.4 per cent on Friday to Rs532.90, as the Indian government opened an offer for sale for 10 per cent of the state-run company. But with Delhi offering stock for as little as Rs510, many analysts see a buying opportunity – particularly if government plans for energy market reform accelerate.
As sanctions on Iranian oil exports tighten, some relief for Tehran has come from the Indian government, which will support insurance for tankers transporting Iranian crude to Indian refiners.
India follows China and Japan in providing insurance support in response to EU sanctions introduced on 1 July, targeting insurers of ships carrying Iranian oil. But it seems likely to be no more than a stop-gap solution to shortages already hitting India’s refineries, as new sanctions are expected to make the trade increasingly difficult.
By Shriram Subramanian of InGovern
The letter sent by The Children’s Investment Fund (TCI) to Coal India is a wakeup call for the Indian government, companies and institutional investors to take corporate governance issues seriously. Probably for the first time in Indian corporate history, an institutional investor has threatened to sue individual board members of a listed entity.