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Power Grid: lines up Rs 22,650 cr capex for 12 projects; FPO price band at Rs 85-90

08 Nov 2010 Evaluate

Navratna company, Power Grid Corporation of India Ltd (PGCIL) has lined up a total estimated fund expenditure of Rs 22,649.39 crore to meet the capital requirements for the implementation of 12 identified projects. As at September 30, 2010, PGCIL will utilise the amount for projects that will strengthen existing transmission lines or grids and projects for establishing new transmission lines connecting new generating plants.

The transmissions projects are expected t o enhance the length of our transmission system by 18,711 circuit kilometres. PGCIL, which is the world’s best transmission companies with 99.77 per cent system availability, will build 9 high capacity power transmission corridors.

The government fixed the price band at Rs 85-90 per share for the Rs 7,600-crore follow-on public offer (FPO) of state-run transmission company Power Grid Corporation of India. The FPO comprises over 840 million equity shares of Rs 10 each, constituting 20 per cent of existing paid-up capital. At the upper end of the price band, the issue will fetch up to Rs 7,600 crore. The company plans to raise 10 per cent fresh equity, while the government is likely to offload 10 per cent of its 86.36 per cent stake in PowerGrid.

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