PowerGrid files FPO document with RoC
New Delhi: Power Grid Corporation has filed papers with the RoC for its follow-on public offer through which it hopes to raise over Rs 5,700 crore.
"Power Grid Corporation has filed the red herring prospectus with the Registrar of Companies (RoC) in connection with the Follow on Public Offer (FPO) of 787,053,309 equity shares of Rs 10 each of the company constituting 17 per cent of its existing paid-up capital," the company said in a regulatory filing to stock exchanges.
The FPO constitutes fresh issue of 601,864,295 equity shares or 13 per cent of existing paid-up capital and simultaneous disinvestment by government of 185,189,014 equity shares or 4 per cent of existing paid-up capital.
The company is expected to raise over Rs 5,700 crore as per current market valuations. The government stake sale is likely to fetch over Rs 1,700 crore to the exchequer.
Shares of the company closed at Rs 96.05 apiece, up 0.21 per cent on the BSE today.
The company will use the proceeds to meet its investment plans in the next two financial years.
The government had early this month approved the follow-on offer of Power Grid to push forward its ambitious disinvestment programme.
The government has set a target of garnering Rs 40,000 crore through disinvestment in this fiscal.
Post-FPO, the government stake in the company will come down to 57.89 per cent from current shareholding of 69.42 per cent.
According to sources, Citigroup, ICICI Securities, UBS, SBI Caps and Kotak Mahindra have been appointed as merchant bankers for the FPO.
This would be the second follow-on offering from Power Grid, which sold a 10 per cent stake along with a similar stake divested by the government in November 2010 at an issue price of Rs 90 a share.