BHEL shortlists Bank of America Merrill Lynch, Morgan Stanley, Kotak Mahindra and ICICI Securities for share sale

MUMBAI: India's Bharat Heavy Electricals has shortlisted Bank of America Merrill Lynch, Morgan Stanley and two Indian banks to manage its share sale valued at about $1 billion, sources with knowledge of the situation said.

The state-run top power gear maker has also shortlisted Kotak Mahindra and ICICI Securities, a unit of India's No. 2 lender ICICI Bank , for bookrunning the share sale, three sources said on Tuesday.

The sources declined to be named as the information was not public yet.

The Indian government plans to sell 5 percent of its stake in BHEL through the follow-on public share offering, the timing of which is yet to be decided. At current market price, the stake is valued at about $1 billion.