Sources who had exclusive knowledge of the proceedings told Reuters that Power Grid Corp of India would most likely do a float of its USD1.2 billion worth of shares on December 3. The float of the state-run company was the Indian government's strategy to revive the country's divestment program. The share sale offering of Power Grid was approved by the country's cabinet in early November. Power Grid would be selling newly-issued stock and the state's divestment of a 4% interest in the utility company.

India's investment credit rating is currently at risk, and that sales of government-owned assets, like its interests in state companies including Coal India were critical to ease the country's finances, said a Reuters report. The government of India was aiming to raise USD6.4 billion from its divestments within the fiscal year ending March next year. However, the country was able to raise USD230 million at the height of the falling Rupee against the US dollar.

The sources, who refused to be identified as the matter was not for public discussion, said the Power Grid float will most likely stay open for potential bidders until the 6th of December.

An official of Power Grid, on the other hand, confirmed that a share sale would most likely be held in December, but was not aware of the time line. Department of Disinvestment Secretary Ravi Mathur could not accommodate Reuters' request for comment immediately about the float schedule.

The Department of Disinvestment was created to oversee floats and share sales in companies owned or backed by the state of India. The department was eager to push through with the share sales as a share market rally is ongoing. The rally of stocks in the market had benchmark index Sensex record its highest figure in November. Sensex is the weighted stock market index of 30 financially-sound and established companies that are listed on the Bombay bourse.