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PowerGrid FPO to hit market in 6-8 months

PowerGrid FPO to hit market in 6-8 months
PTI
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First Published: Tue, Jan 12 2010. 06 32 PM IST
Updated: Tue, Jan 12 2010. 06 32 PM IST
New Delhi: State-owned PowerGrid Corp on Tuesday said it will hit the capital market with its follow-on public offer (FPO) in the next 6-8 months.
“Our FPO can be expected in the second quarter of the next financial year (2010-11),” PowerGrid Corporation CMD SK Chaturvedi told reporters here.
The company plans to raise Rs3,000 crore through this offer.
The FPO would comprise partial stake sale by the government and also issue of some fresh equity.
“We plan to raise some fresh equity through this FPO but how much I cannot say right now...Power Ministry will take up our FPO after it is done with NTPC and REC,” Chaturvedi added.
The government holds 86.36% stake in PowerGrid Corp.
Earlier, the company had indicated plans to infuse 15% fresh equity through the forthcoming FPO.
PowerGrid plans to invest Rs55,000 crore for adding 37,000 MW of inter-regional electricity transmission capacity in the country during the 11th Five-Year Plan (2007-12).
The company also targets to augment transmission capacity to 23,400 MW in the current fiscal from 19,800 MW at present.
Meanwhile, the company would sign an agreement with Bangladesh later next month for setting up a transmission link with the neighbouring country.
“A formal MoU with Bangladesh government would be signed on our visit next month between February 17 and 20,” he added.
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First Published: Tue, Jan 12 2010. 06 32 PM IST
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