PowerGrid in talks with defence force to lease out towers

PowerGrid in talks with defence force to lease out towers

Gurgaon: State-run transmission utility PowerGrid Corporation is in talks with the Army and Air Force for leasing out its towers for data transfer purposes, even as the company gears up to raise over Rs8,000 crore through a follow-on public offer opening on 9 November.

“Defence organisations (Army and Air Force) need a complete network for transfer of data and information for which we can lease our (transmission) networks," a PowerGrid official said.

PowerGrid is coming out with an FPO on 9 November to raise over Rs8,000 crore for funding expansion plans. The company plans to offer 10% fresh equity under the issue, while the government will offload 10% of its 86.36% stake in PowerGrid.

PowerGrid filed a red herring prospectus with market regulator Sebi yesterday and has received Registrar of Companies (ROC) approval for the IPO, which opens on 9 November and closes on 12 November.

The Cabinet Committee on Economic Affairs (CCEA) gave the nod for PowerGrid’s FPO on 22 July this year.

The offer comprises over 84 crore (84,17,68,246) equity shares of Rs10 each, constituting 20% of the existing paid-up capital of the company.

The company has appointed ICICI, SBI Cap, Goldman Sachs and JP Morgan as its merchant bankers for the FPO.

The transmission firm has targeted a capital expenditure of Rs12,900 crore in the current financial year.

The company already has 75 consultancy projects in hand, some of which are in Nepal, Bhutan, Afghanistan, Nigeria and Dubai. These projects are expected to be completed over the next two to three years.