The Department of Disinvestment (DoD) on Friday appointed five merchant bankers ? Citigroup Global Markets, ICICI Securities, Kotak Investment Banking, SBI Capital Markets and UBS Securities ? to aide the government in Power Grid’s R7,700-crore stake sale programme, people familiar with the development said.
Sources said nine bankers, including Axis Capital, Barclays Capital, HSBC Securities and IDBI Capital, had shown interest early last week and submitted their bids for the proposal, which is likely to be scheduled in November-end or the beginning of December.
The government intends to dilute 4% (18.51 crore shares) of its existing equity paid-up capital and, in addition, issue fresh shares representing 13% of the pre-issue equity (60.18 crore shares) in the state-owned electric utilities company, which could help the government fetch R7,725 crore at the current market price. On Monday, the Power Grid share ended down R0.75 or 0.76% at R98.15 apiece.
