Power Grid FPO to hit market on November 9

State-run transmission company Power Grid Corporation of India today said its over Rs 8,000-crore follow-on public offer would hit the market on November 9.

"The board of directors of the company at its meeting held on October 20, 2010, have approved the red herring prospectus (RHP) for follow on offer of PowerGrid ... As per RHP approved by the board ... Opening of bid (would be) on November 9," the company said in a filing to BSE.

The bid would close on November 11 for institutional investors and on November 12 for retail and non-institutional bidders.

The company is planning to raise 10 per cent fresh equity, while the government is likely to offload 10 per cent of its 86.36 per cent stake in PowerGrid.

The Cabinet Committee on Economic Affairs gave its nod to the follow-on offer (FPO) by PowerGrid on July 22 this year.

The offer comprises over 84 crore (84,17,68,246) equity shares of Rs 10 each constituting 20 per cent of existing paid-up capital.

Besides disinvestment of the government stake, the fresh capital raising would be used for part funding investment requirement of about Rs 58,000 crore of the PSU.

The company had hit the capital market in October, 2007, with its maiden public offer. The government had divested 5 per cent of its stake in the company at that time.

Aiming to raise Rs 40,000 crore through disinvestment this fiscal, the government has mopped up over Rs 1,000 crore by divesting stake in Satluj Jal Vidyut Nigam, and around Rs 1,000 crore through Engineers India FPO.

Besides, Coal India initial public offer, the biggest issue so far, closes today.

Moreover, the government will divest its stake in Manganese Ore India Limited, Hindustan Copper and Shipping Corporation of India in the current fiscal.

The disinvestment in SAIL, ONGC and IOC is expected in the last quarter of the current fiscal.

Last fiscal, the government had raised Rs 25,000 crore through stake sale in Oil India, NMDC, REC and NTPC.