UPDATE 1-India's Hindalco says begins share sale

* Launches share sale for up to $600 mln - sources * Company says has approval to sell up to $625 mln (Adds company confirmation) MUMBAI, Nov 23 (Reuters) - Indian aluminium maker Hindalco Industries Ltd (HALC.BO) said it had shareholder approval to sell up to 29 billion rupees ($625 million) worth of shares and it was opening a share sale on Monday at 130.90 rupees each. Earlier, two sources with direct knowledge of the deal said the company was selling new shares worth $350 million to institutions at 130.9 rupees a share with a greenshoe option for an additional $250 million. [ID:nBMA006461]. Hindalco, which bought Canadian firm Novelis in 2007, has said it plans to use the funds for expansion. It is trebling capacity to 1.7 million tonnes by 2013 at a cost of 250 billion rupees. On Monday, Hindalco shares closed down 0.4 percent at 133.80 rupees in a Mumbai market that rose 0.9 percent. Bank of America Merrill Lynch (BAC.N), Citigroup (C.N), and HSBC (HSBA.L) are among the arrangers, said the sources, who spoke on condition of anonymity. ($1=46.5 rupees) (Reporting by Narayanan Somasundaram & Nishant Kumar; Editing by John Mair) ((narayanan.somasundaram@thomsonreuters.com; 91 22 6636 9068; Reuters Messaging narayanan.somasundaram.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to newsfeedback.asia@thomsonreuters.com))