Power ministry seeks cabinet nod for Power Grid share sale

MUMBAI (Reuters) - State-run Power Grid Corp of India said on Friday that the ministry of power has sought the federal cabinet's approval for a secondary share sale, which will include the government divesting 4 percent of its stake.

The company will also issue 601.9 million new shares, or 13 percent of its existing paid-up capital, as part of the follow-on share sale, Power Grid said in a statement to the Bombay Stock Exchange.

The government's divestment of a 4 percent stake in the company is part of New Delhi's plan to raise 400 billion rupees through sale of its shares in state companies in the current fiscal year ending March 2014.

 

The power ministry has asked Power Grid to appoint banks for the share sale.

(Reporting by Subhadip Sircar; Editing by Sumeet Chatterjee)