Citigroup and HSBC are among five banks chosen to manage the planned sale of a stake in Oil and Natural Gas Corporation (ONGC).
The government, which has a 68.94 per cent stake in ONGC, is considering selling a 5 per cent stake, worth about $3 billion at the current market price.
If completed, the sale could raise more than a quarter of the $10.5 billion target for asset sales this financial year announced by Finance Minister Arun Jaitley to help to bridge the budget deficit.
Three sources with direct knowledge of the development said on Monday that UBS and investment banks Kotak Investment Banking and ICICI Securities have also been mandated by the finance ministry's disinvestment department.
The sale is planned to be launched during the three months to December, the sources said, with one of the sources saying that investor roadshows could start in mid-September.