PowerGrid to invest up to 2,000 cr in telecom biz

PowerGrid to invest up to 2,000 cr in telecom biz

Mumbai: PowerGrid Corporation of India (PGCIL) will invest up to 2,000 crore to boost its existing telecom network in the next two years, Chairman and Managing Director R. P. Singh said on 5 October.

“We will be investing Rs1,000 crore to 2,000 crore in telecom business in the next one to two years," he said after the company’s listing on the National Stock Exchange (NSE) here.

PGCIL’s telecom network, which extends to 60 cities, will be doubled and the government-owned firm will soon foray into the business of retailing its network for entertainment ventures like movies.

“Besides renting out our network capacity, we can use the network in entertainment sector and we are in talks with a Mumbai-based media company," Singh said.

The company expects to earn a profit of Rs130-135 crore from the telecom business and Rs200 crore from consultancy business in 2007-08, he said.

PGCIL listed on the NSE with a 75% premium at Rs90.90, against the issue price of Rs52.

The power transmission company has already joined the list of top 50 firms in terms of market capitalisation on the NSE, exchange’s deputy managing director Chitra Ramakrishnan said.

In the first few minutes of trade on the NSE, the scrip touched a high of Rs98 and more than two crore shares were traded. On BSE, PGCIL got listed at Rs85 and reached Rs100 soon after listing.

PGCIL generated demand for a record 1,95,000 crore shares as its initial public offering (IPO) got subscribed 64.5 times.