PGCIL clocks Rs 1,040 cr quarterly profit; plans 15% stake sale

NEW DELHI: Power Grid Corporation of India Ltd ( PGCIL), which today reported nearly 20 per cent jump in net profit at Rs 1,040.34 crore in the first quarter of the current financial year, plans to sell 15 per cent stake in the company.

The state-run transmission utility had raked in a net profit of Rs 870.11 crore in the June quarter of last fiscal.

Looking to raise funds for its investment plans, the company's board today approved 15 per cent stake sale through Follow on Public Offer.

Total income of the company climbed to Rs 3,634.03 crore in the latest June quarter, according to a regulatory filing.

In the year-ago period, the same stood at Rs 2,980.27 crore.

"The Board of Directors of the company at its meeting held on August 01, 2013, have approved the FPO of 15 per cent of existing paid up share capital comprising fresh issue of 69,44,58,802 equity shares," it said in another filing.

At today's closing price of Rs 102.95 per scrip, the proposed FPO would fetch more than Rs 7,100 crore.

According to Power Grid, the proceeds would be utilised for augmenting resources to fund its investment programme.

The proposal would be subject to necessary approval of the government, it added.

This would be the second time that Power Grid would be going for FPO after doing the same in November 2010.

Incorporated in 1989, Power Grid was listed on the bourses in September 2007.

At the end of June quarter, the government's stake in the company stood at 69.42 per cent.

Shares of the company rose more than two per cent to close at Rs 102.95 on the BSE.