The Finance Ministry has moved a Cabinet note for selling 11.36% of its stake in hydel producer NHPC, which could fetch over Rs 1,800 crore to the exchequer.
"We have moved the Cabinet for approval of NHPC disinvestment. The proposal may come up for CCEA consideration in its next meeting," a source said.
The government has selected three merchant bankers -- Credit Suisse, HSBC and SBI Cap -- for managing NHPC stake sale.
The government plans to sell 11.36% of its stake or 120 crore shares, in NHPC through an Offer for Sale (OFS) in the domestic market.
At the current market price of Rs 15.40 apiece, the stake is valued at about Rs 1,850 crore.
The government currently holds 86.36% stake in NHPC. The hydro-power generator listed on the bourses in 2009 after the promoter divested a 5% stake and the company issued 10% fresh equity.
The paid-up equity capital of the company, as of March 31, 2012, was Rs 12,300.74 crore.
While the disinvestment department is eager to offload shares in NHPC, the Power Ministry has been asking for time, citing valuation issues.
Up to 10% of the OFS would be reserved for the company's employees and the shares would be offered to them at a 5% discount to the issue price.
Government plans to garner Rs 40,000 crore through disinvestment in the current fiscal. It has already raised about Rs 1,323 crore through stake sale in MMTC, Hindustan Copper, National Fertiliser, Neyveli Lignite, STC and ITDC so far this year.
