PowerGrid's Rs 2,000-cr FPO to hit market by March

State-run power utility PowerGrid Corporation today said its Rs 2,000-crore follow-on public offer (FPO) is likely to hit the capital market by March 2010.

"The company's Rs 2,000 crore FPO is expected to hit the market by March next year," PowerGrid Chairman and Managing Director S K Chaturvedi told PTI.

"We are in the the process of launching the FPO and awaiting government approval. We have planned to submit the Draft Red Herring Prospectus (with Sebi) by next month," he said.

However, Chaturvedi did not divulge any information about quantum of fresh equity and government's stake dilution. 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.

The market capitalisation of the company stands at Rs 44,256 crore. Shares of the company closed marginally higher at Rs 105.25 on the Bombay Stock Exchange.

PowerGrid plans to invest Rs 55,000 core 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.