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A panel of ministers on disinvestment is likely to meet on Friday to decide on the price band for PGCIL disinvestment, which is expected to raise around Rs 7,400 crore at current stock price.
The Power Grid issue is likely to remain open from December 3-5, sources said.
The Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, will decide on November 29 the date and pricing for the follow-on-public offer (FPO) of the state-owned PGCIL, they said.
At the current market price of Rs 93.85 a share, the sale of 78.70 crore shares could fetch around Rs 7,400 crore. The company may garner close to Rs 5,660 crore, while the government will get around Rs 1,740 crore.
Earlier this month, the Cabinet had cleared the FPO of Power Grid Corporation of India, which will comprise 13% fresh equity by the company and 4% stake sale by the central government.
The government will sell 18.51 crore shares in PGCIL, while the company will issue fresh 60.18 crore shares through the offer. Of the fresh shares, about 2.4% will be reserved for the employees.
PGCIL has already filed the red herring prospectus with the Registrar of Companies. Citigroup, ICICI Securities, UBS, SBI Caps and Kotak Mahindra have been appointed as merchant bankers for the FPO.
This will be the second follow-on offering from PGCIL, which sold a 10% stake along with a similar stake divested by the government in November 2010 at an issue price of Rs 90 a share.
The company hit the capital market with initial public offering in October 2007.
