India to sell Rs 2794 crore stake in NHPC

India will sell a 11.36% stake in state-controlled hydropower producer NHPC  on Wednesday to raise Rs 28 billion ($420 million, or Rs 2,794 crore), the NewsRise news agency reported, kicking off the government`s privatisation programme for this year.

The government wants to raise 565 billion rupees from the sale of stakes in state-owned enterprises in the 2016/17 financial year. That is 19% lower than last year`s target, which the government failed to hit.

The floor price for the NHPC stake sale is 21.75 rupees per share, NewsRise quoted a government official as saying to reporters in New Delhi. The offer is at a 6% discount to the company`s closing price of 23.05 rupees on Tuesday. The government is also seeking bids from merchant bankers and brokers to manage the sale of a 10% stake in state energy company Oil India, a finance ministry statement said.