BackPower Grid said to pick Citi, UBS for $1.3 billion share offer
Power Grid plans to sell new shares equivalent to a 13% stake, while the govt, which owns 69.42%, will offer 4% of its holding
Premium(Pradeep Gaur/Mint)
Mumbai: Power Grid Corp. hired Citigroup Inc. and UBS AG to help sell a $1.3 billion stake in the Indian state-run distributor of electricity, said three people with knowledge of the matter.
ICICI Securities Ltd., SBI Capital Markets Ltd. and Kotak Mahindra Capital Co. were also picked to help manage the offering, the people said, asking not to be identified before an announcement. The sale is expected to be completed by next year’s first quarter, they said.
The company plans to sell new shares equivalent to a 13% stake, while the government, which owns 69.42%, will offer 4% of its holding, Power Grid said in an exchange filing on 13 September. That values the sale at Rs7760 crore ($1.3 billion), data compiled by Bloomberg show.
Spokesmen for Power Grid and the banks declined to comment or weren’t immediately available. BLOOMBERG
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