PowerGrid board okays FPO; issue likely by Sept
The state-owned transmission major PowerGrid Corp on Wednesday said its board has given an in-principle approval for a follow-on public offer, which would enable it to mop up over Rs 4,700 crore.
By PTI |
NEW DELHI: The state-owned transmission major PowerGrid Corp on Wednesday said its board has given an in-principle approval for a follow-on public offer, which would enable it to mop up over Rs 4,700 crore.
However, this would not be an equity dilution by the Government as the company would be issuing 10 per cent fresh equity. At the current share price of Rs 113.20, the company can raise over Rs 4,700 crore.
The city-based PowerGrid is planning to hit the markets by September.
"At a meeting on January 25, our board of directors approved a follow-on public offer of 10 per cent fresh equity which is expected to hit the market by September," PowerGrid chairman and managing director SK Chaturvedi said in New Delhi today.
"We have planned to raise over Rs 3,500 crore. But going by the current stock price, we may end up raising more than that," he said, adding, "since this approval would require government nod, we would soon send a proposal to the Power Ministry."
The Government holds 86.36 per cent stake in PowerGrid, which has an equity base of 4,20,88,41,230 shares.
As part of its massive divestment programme, the Government has so far divested in two energy firms--NHPC and Oil India-- this fiscal and four more offers are in the offing for this fiscal--NTPC, REC, NMDC and SJVNL.
However, this would not be an equity dilution by the Government as the company would be issuing 10 per cent fresh equity. At the current share price of Rs 113.20, the company can raise over Rs 4,700 crore.
The city-based PowerGrid is planning to hit the markets by September.
"At a meeting on January 25, our board of directors approved a follow-on public offer of 10 per cent fresh equity which is expected to hit the market by September," PowerGrid chairman and managing director SK Chaturvedi said in New Delhi today.
"We have planned to raise over Rs 3,500 crore. But going by the current stock price, we may end up raising more than that," he said, adding, "since this approval would require government nod, we would soon send a proposal to the Power Ministry."
The Government holds 86.36 per cent stake in PowerGrid, which has an equity base of 4,20,88,41,230 shares.
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As part of its massive divestment programme, the Government has so far divested in two energy firms--NHPC and Oil India-- this fiscal and four more offers are in the offing for this fiscal--NTPC, REC, NMDC and SJVNL.
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