Power Grid's Rs8,500-crore follow-on offer set for 9 November
21 Oct 2010
The follow-on public offer of shares of state-owned power transmission utility, Power Grid Corporation of India Ltd, will open for subscription on 9 November and close on 11 November.
The board of directors of the company at its meeting yesterday approved the red herring prospectus for the follow-on offer.
The FPO will see the company issuing 10 per cent fresh equity and the government divesting a further 10 per cent stake in the company.
At the current market cap of Rs43,877 crore, the company is expected to raise about Rs8,500 crore from the offer.
The central government currently holds about 86.4 per cent stake in the company.
Bids by retail and non-institutional bidders, including eligible employees bidding in the employee reservation portion, will close on 12 November 2010, the company said in a filing with the Bombay Stock Exchange (BSE).
"Part of the issue proceeds will be invested in the high-power corridor, which is costing us Rs58,000 crore, while some amount will go towards the 11th Plan expenditure," S K Chaturvedi, chairman and managing director of the company, said.
