The government’s bid to sell off shares in Indian software giant GIC is in danger of unraveling amid fierce political and legal battles.GIC, which last year announced a deal to buy out Indian software firm Infosys, said in a statement that the government’s proposal to sell its shares in the firm is a sham and will damage the future of Indian startups.
The government, which has made the deal conditional on the completion of a tender, is facing a fierce political battle as it seeks to sell the stake for Rs 20,000 crore ($27 million) in what is expected to be the biggest privatisation in the country’s history.
It is unclear whether the government will get the tender and, if so, whether the company’s bid will be successful.
It is also unclear whether it will get a government subsidy of Rs 5,000 a share.
The BSE deals have been a thorny issue for the government, with some analysts saying the deals are designed to prop up an industry that has been facing tough times in the aftermath of demonetisation.
But the companies are trying to claim that the deal is a way to protect their investments, and the government has repeatedly argued that the companies have benefited from the deals.
The government is trying to keep the two deals separate by including an exemption for the companies.
The companies have been pressing for an exemption from the government subsidy.
The Finance Ministry has yet to respond to the companies’ request for an order.
On Tuesday, Finance Minister Arun Jaitley said that the Government will not sell its stake in the firms.
“We will not be sold out.
The Government has given a very clear answer that the BSU (Branch Transaction and Surcharge) will not happen,” Jaitly said.GIPS, Infosy, and Cognizant have all been selling their stakes in the three companies.
GIC has also filed for bankruptcy protection, which would allow it to pursue its own acquisition of GIC’s stake.
The governments bid to buy the stake in Infosyr is a bid to clear the way for GIC to buy its stake, but the government is struggling to sell a stake in a company that has raised $10 billion since the crisis.
The company has a stake of almost 9% in InfoSys, with Infosyd and Infosyn working as joint venture partners.
The deal could also benefit GIC, as Infosyt has had a long-term deal with InfoSys.
But GIC had earlier raised concerns about the deal.
“GIC will continue to be hurt as a result of this deal,” said Prashant Sanyal, an analyst at BNY Mellon, in a report.
Infosys and Infoysyn had previously partnered to buy Infosyon.GIBs latest proposal has been seen as a way of ensuring that the country does not lose out on a lucrative deal in the sector.
The proposal has also sparked criticism from many quarters, including from the Prime Minister, who has said that it is time for the people to demand that the people have their say.
“The people are the one who have to decide,” Modi said at a news conference last month.
“This will happen if we want to ensure that our country gets a good deal in this sector.”
The BSU is expected by the government to close on December 31, 2018, but there are concerns that it could extend to the middle of next year.