New Delhi: Power Grid Corporation of India Ltd, which is slated to hit the capital market in June with its maiden offer, on 18 May reported a 21.8% increase in its profit for 2006-07 at Rs1,229 crore, against Rs1,009 crore in the year-ago period.
The company’s turnover for the fiscal rose by 14.85% to Rs4,082 crore as compared to Rs3,554 crore in 2005-06, the company said in a statement.
State-run PowerGrid had filed its draft red herring prospectus with Sebi for its initial public offer and divestment of government equity on 17 April.
The central transmission utility is the third public sector undertaking to plan an IPO after Power Finance Corp. Ltd and National Hydroelectric Power Corp. Ltd.
PowerGrid would issue 10% fresh equity in the market, while the government would sell 5% stake in the corporation.
The company, with a paid-up capital of Rs3,800 crore and a face value of Rs10 for each share, is likely to raise a minimum of Rs570 crore from its offer of 15% stake.
The last time disinvestment of a PSU took place was in NTPC Ltd in 2004, when the government followed a similar process of piggy backing on fresh equity.