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Home News Power Sector News Centre fixes price band at Rs 85-90 of Power Grid FPO

Centre fixes price band at Rs 85-90 of Power Grid FPO

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DisinvestmentThe centre govt fixed price band at Rs 85-90 per share for about Rs 76 billion follow-on public offer of state-run transmission company Power Grid  Corporation of India. ``The price band for PowerGrid has been fixed between Rs 85-90,`` Power Minister Sushilkumar Shinde said after meeting of Group of Ministers in New Delhi on 07-11-2010.

The FPO comprises over 840 million (84,17,68,246) equity shares of Rs 10 each constituting 20% of existing paid-up capital. At the upper end of the price band, the issue will fetch up to Rs 76 billion.

The follow-on public offer of the company hits the market on 9th November. The bid closes on 11th November for institutional investors and on 12th November for retail and non-institutional bidders.

The company plans to raise 10% fresh equity, while the government is likely to offload 10% of its 86.36% stake in PowerGrid.

Besides disinvestment of the government stake, the fresh capital raising would be used for part funding investment requirement of about Rs 580 billion of the PSU.

The PSU has already tied up 86% of the funds required for its capex plan and the remaining amount will be raised through the FPO and bonds issues.

The company aims to augment transmission capacity to 23,400 MW in the current fiscal from 19,800 MW at present.

On the transmission side, the company had been awarded Rs 70 billion worth of projects. It hopes to bag projects worth Rs 140 billion in FY`11.

The company had hit the capital market in October, 2007, with its maiden public offer.

The government had divested 5% of its stake in the company at that time.

Source- PTI

 

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