According to reports, 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.