Power Grid board approves 20% dilution

Power Grid Corporation of India Ltd has informed BSE that the board of directors of the company at its meeting held on July 2 have approved the follow on public offer (FPO) of 20 per cent of existing paid up share capital comprising fresh issue of 10 per cent of existing paid up share capital and offer for sale (disinvestment) of 10 per cent of existing paid up share capital by Government of India subject to approval of the Cabinet Committee on Economic Affairs (CCEA).

Shares of Power Grid Corporation gained a marginal 0.24 per cent on the Bombay Stock Exchange (BSE) to close at Rs 103.45.

The offering is part of the overall divestment programme of the government aimed at raising Rs 40,000 crore in the current financial year. The mega initial public offer (IPO) of Coal India is expected to hit the market in the next couple of months. Engineers India and Hindustan Copper are also in the fray for divesting a part of the government holding.