Power Grid Corporation board today gave an in-principle approval for the follow-on-public offer (FPO) of equity shares up to 10% of paid-up capital from domestic/external market for augmenting resources to fund its investment plans. The government of India currently holds 86.36% stake in the company, while the remaining 13.64% is held by public.
The board also got an approval to investment for 'Immediate evacuation System for Nabinagar TPS' (1000 MW) at an estimated cost of Rs 215.86 crore, with commissioning schedule of within 28 months from the date of investment approval.
Last week, NTPC and REC - two other PSUs - had received board nods and plan to mobilise around Rs 14,000 crore via FPOs. Both these FPO's will hit the market in early next month.
The Cabinet had earlier asked all listed profitable PSUs to have public shareholding of at least 10% in each of them. There are 17 listed PSUs which have public holding less than 10% and having total market capitalisation of Rs 6,92,835 crore.
Power Grid Corporation declined 1.2% to Rs 113.20, as against a near 3% fall in the Sensex.
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