Union cabinet on Tuesday approved a plan to sell 5 percent of the government's stake in power gear maker Bharat Heavy Electricals (BHEL) , the government said in a statement.
The government will sell 5 % of its 67.7 % holding in BHEL through a follow-on public share offering. At current prices, the stake is valued at about $940 million.
The stake sale is part of the government's plan to raise 400 billion rupees ($8.7 billion) through stake sales in state-run firms in the current fiscal year to March 2012.
BHEL has shortlisted Bank of America Merrill Lynch , Morgan Stanley and two Indian banks to manage the share sale, sources with knowledge of the situation told Reuters last month.