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Power Grid Corp to hit market with IPO in May or June

Power Grid Corp to hit market with IPO in May or June
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First Published: Tue, Apr 17 2007. 06 51 PM IST
Updated: Tue, Apr 17 2007. 06 51 PM IST
PTI
New Delhi: State-run Power Grid Corporation of India Ltd (PGCIL) filed its draft prospectus with the Securities and Exchange Board of India (Sebi) on 17 April, for its initial public offer and divestment of government equity.
The central transmission utility would issue 10% fresh equity in the market and the government would sell 5% stake in the corporation, company sources said.
PGCIL follows another power sector public enterprise, National Hydroelectric Power Corporation, which filed its draft red herring prospectus with Sebi on 5 April and plans to hit the market by June this year.
Sources said PGCIL also plans to hit the capital market by May or June with its IPO.
The transmission monolith has a paid-up capital of Rs3,800 crore and each share would carry a face value Rs10, sources said, but declined to say how much money is likely to be raised from the issue.
Going by face value, the public offer of 15% would raise a minimum Rs570 crore.
While proceeds from the 10% fresh equity would be retained by the company to part-finance upcoming projects, that from 5% would go to the government.
The government had last year halted the disinvestment process in PSUs, giving in to pressure from Left parties and DMK, who opposed divestment in Neyveli Lignite Corporation.
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.
PGCIL posted net profit of Rs799 crore for 2006-07 and plans to make total investment of Rs55,000 crore during 2007-12 to take inter-regional power transmission capacity to 37,000mw from about 12,000mw at present.
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First Published: Tue, Apr 17 2007. 06 51 PM IST
More Topics: Money Matters | IPOs |