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Power Grid files draft prospectus for IPO

Special Correspondent

Will raise a minimum of Rs. 570 crore

NEW DELHI: Giving further impetus to the disinvestment process, state-run Power Grid Corporation of India on Tuesday filed a draft prospectus with the Securities and Exchange Board of India (SEBI) for its Initial Public Offer (IPO) and divestment of government equity. This comes close on the heels of another PSE National Hydro Power Corporation (NHPC) approaching the market regulator for an IPO.

The dominant transmission utility would issue 10 per cent fresh equity in the market and the government would sell five per cent stake in PGCIL. PGCIL follows NHPC that filed its draft red herring prospectus with SEBI on April 5 and plans to hit the market by June.

According to sources, PGCIL was targeting to hit the capital market by May or June with the public offer. The transmission monolith has a paid-up capital of Rs. 3,800 crore and each share would carry a face value Rs. 10, the sources said declining to state what amount was sought to be raised.

Going by the face value, the public offer of 15 per cent would raise a minimum of Rs. 570 crore. While proceeds from the 10 per cent fresh equity would be retained by the company to part-finance upcoming projects, the five per cent portion would go to Government.

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