PowerGrid’s Rs2k cr FPO to hit market by March 2010

PowerGrid’s Rs2k cr FPO to hit market by March 2010

New Delhi: State-run power utility PowerGrid Corporation on Tuesday said its Rs2,000 crore follow on public offer (FPO) is likely to hit the capital market by March 2010.

“The company’s Rs2,000 crore FPO is expected to hit the market by March next year," PowerGrid CMD SK Chaturvedi told PTI.

“We are in the the process of launching the FPO and awaiting government (Cabinet) approval. We have planned to submit the Draft Red Herring Prospectus (with Sebi) by next month," he said.

However, Chaturvedi did not divulge any information about quantum of fresh equity and government’s stake dilution. The government holds 86.36% stake in PowerGrid Corp.

Earlier, the company had indicated plans to infuse 15% fresh equity through the forthcoming FPO.

The market capitalization of the company stands at Rs44,256 crore. Shares of the company closed marginally higher at Rs105.25 on the Bombay Stock Exchange.

PowerGrid plans to invest Rs55,000 core 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.