India's power ministry seeks cabinet nod for Power Grid share sale

Last Updated: Fri, Sep 13, 2013 14:40 hrs

MUMBAI, Sept 13 (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 ($6.28 billion) 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.

($1 = 63.6700 Indian rupees) (Reporting by Subhadip Sircar; Editing by Sumeet Chatterjee)

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