The government on Thursday gave the go-ahead to the central transmission utility PowerGrid?s proposed follow-on public offer (FPO), which is expected to mop up about Rs 8,400 crore at the current market price.
The FPO will include divestment of government?s 10% stake along with fresh issue of 10% shares by the company.
PowerGrid sources said that the company?s FPO is expected to hit the capital market toward October end. The company plans to adopt the fast-track mode for the proposed FPO, for which it needs to fulfil the minimum three-year listing norm.
The company issued its initial public offer in September 2007.
PowerGrid is facing an equity shortfall of Rs 4,200 crore in meeting its capital expenditure requirement for the current 11 th plan.
?The CCEA today approved PowerGrid?s FPO of 84 crore equity shares of Rs 10 each constituting 20% of existing paid-up capital,? said an official statement.
This comprises fresh issue of 42 crore equity shares and offer for sale by the government of 42 crore equity shares . Currently, the government holds 86.36% stake in PowerGrid.
Power minister Sushil Kumar Shinde told reporters that PowerGrid is likely to come out with its FPO by October
