Power Grid Corporation to invest Rs55,000 crore in 5 years; Rs3,000 crore IPO opens on 10 September

07 September 2007

Mumbai: PowerGrid Corporation of India Ltd (PGCIL) will invest Rs55,000 crore in the next five years to expand the national grid capacity to transmit 37,000 MW of electricity by 2012.

To part finance these projects, the central power transmission company is hoping to raise up to Rs3,000 crore through an initial public offer. The issue will open on September 10 and close on September 13, A R Agarwal, executive director, business development (PGCIL), said.

The issue comprises a fresh issue of up to 382,621,930 equity shares by the company and an offer for sale of up to 191,310,965 equity shares by government.

The issue shall constitute approximately 13.64 per cent of the fully diluted post- issue capital of the company. After the issue, the Government of India, through the ministry of power will continue to hold 86.36 per cent of the diluted post-issue paid-up equity capital of the company.

"The price band for the issue has been fixed between Rs44 and Rs52 per equity share," he said. The proceeds would be used to part-finance 15 projects that involving a total investment of Rs12,280 crore.