(Adds details, share price, planned divestment in other
Nov 19 State-run Power Grid Corp of India's
sale of shares, valued at about $1.2 billion, is
likely to open on Dec. 3, three sources with direct knowledge of
the matter said, as part of the government's drive to revive the
The Power Grid offering, which was approved by the Indian
cabinet earlier this month, includes fresh issue of company
shares and the government's divestment of a 4 percent stake.
The government's planned sale of stakes in Power Grid and
other state companies including miner Coal India Ltd
is critical to relieving pressure on public finances that could
put the country's investment-grade credit rating at risk.
India has targeted raising $6.4 billion from selling stakes
in state companies in the fiscal year ending March 2014, but has
so far managed about $230 million, as ministries squabble over
the timing of the issues and the rupee's fall against the
The Power Grid issue is likely to remain open for investors
to bid until Dec. 6, said the sources, who declined to be named
as they were not authorised to speak to the media before a
A Power Grid official said the issue was likely to be
launched in December but he was not aware of the launch date.
Ravi Mathur, secretary at the Department of Disinvestment, was
not immediately available to comment.
Shares of Power Grid were trading down 1.3 percent at 95.10
rupees on Tuesday at 0924 GMT. At the current market price the
sale of 787 million shares, of which 185 million will be sold by
the government, will raise about $1.2 billion.
Power Grid said on Monday that it had filed for the
follow-on offering with the market regulators.
The divestment department, which oversees stake sale in
state companies, is keen to push through the stake sales to take
advantage of a share market rally that sent India's benchmark
stock index to a record high this month.
The government has also revived plans to sell stakes in two
state companies, Indian Oil Corp and Coal India, to
raise about $2.3 billion by mid-December, sources with direct
knowledge of the matter told Reuters last week.
($1=62.4450 Indian rupees)
(Reporting by Sumeet Chatterjee in Mumbai)