PowerGrid's FPO to hit capital mkt in 6-8 months

State-owned PowerGrid Corporation today said it will hit the capital market with its follow-on public offer (FPO) in the next 6-8 months.

"Our FPO can be expected in the second quarter of the next financial year (2010-11)," Chairman and Managing Director PowerGrid Corporation S K Chaturvedi told reporters here.

The company plans to raise Rs 3,000 crore through this offer.

The FPO would comprise partial stake sale by the government and also issue of some fresh equity.

"We plan to raise some fresh equity through this FPO but how much I cannot say right now...Power Ministry will take up our FPO after it is done with NTPC and REC," Chaturvedi added.

The government holds 86.36 per cent stake in PowerGrid Corp.

Earlier, the company had indicated plans to infuse 15 per cent fresh equity through the forthcoming FPO.

PowerGrid plans to invest Rs 55,000 crore for adding 37,000 Mw of inter-regional electricity transmission capacity in the country during the 11th Five-Year Plan (2007-12).

The company also targets to augment transmission capacity to 23,400 Mw in the current fiscal from 19,800 Mw at present.

Meanwhile, the company would sign an agreement with Bangladesh later next month for setting up a transmission link with the neighbouring country.

"A formal MoU with Bangladesh government would be signed on our visit next month between February 17 and 20," he added.