The process for preparing a Cabinet note for state-run Power Grid Corporation of India's (PGCIL) follow-on-public offer (FPO) will start soon. "Preparation for cabinet note for (PGCIL) FPO will start now and then we would carry forward the process," a power ministry official said.
Last week, the government had said that in an effort to raise Rs 40,000 crore from disinvestment, it would sell stake in 10 more PSUs, including Indian Oil, MMTC, Coal India Ltd, SAIL, RINL and Shipping Corporation, in the current financial year.
Engineers India is likely to be divested in June, Coal India in August, Hindustan Copper in August-September, SAIL in September and Power Grid in November this year.
The budget has upped the revenue target from sale of government equity in CPSUs to Rs 40,000 crore in 2010-11 from the Rs 25,000 crore in the last fiscal.
The first stake sale of this fiscal -- SJVNL -- has got a good response from investors, prompting the government to fix the issue price at the upper end of the band at Rs 26 a share. The stake sale would fetch the centre over Rs 1,000 crore.
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