An Inter-Ministerial Group will decide on the appointment of merchant bankers to manage the stake sale of Power Grid Corporation of India (PGCIL).

The Inter-Ministerial group will meet on Monday to chalk out the process to further disinvest government's 5 per cent stake in PGCIL and invite bids from investment bankers, an official said.

The stake sale could fetch over Rs 3,500 crore to the exchequer. The government holds 69.2 per cent stake in PGCIL, as of September 2012. The IMG, headed by DoD secretary Mohammad Haleem Khan, would also decide on the mode of disinvestment, which is the most likely to be through the 'offer-for-sale' route.