Top government sources said the IPO was cleared by the Cabinet yesterday and a formal announcement would be made shortly. The power ministry had proposed a fresh issue of 10 per cent of the existing paid-up capital of the company.
The finance ministry wanted that, like the NTPC selloff last year, the government should also offload a 10 per cent stake in the company at the time of the public offer.
But the Cabinet, according to the sources, has favoured a five per cent divestment. The proceeds from the 5 per cent selloff might not accrue to the government during the current financial year as it would be at least four months before the IPO hit the market, officials said.
This is the latest in the government