Power Grid to expand network with FPO proceeds

State-run Power Grid Corp (PGCIL) Thursday said it would use the proceeds worth about Rs.5,400 crore from its follow-on public offer (FPO) for expanding the company's transmission network.

"We have identified 27 projects, worth over Rs.48,000 crore, which we plan to complete in the next two years," PGCIL chairman R.N. Nayak told mediapersons after the listing of fresh shares.

The additional equity issued in the FPO started trading Thursday.

PGCIL's follow-on-public offer (FPO), which was subscribed over six times, saw bids for nearly 530 crore shares over four days ending Dec 6, against 78.70 crore shares on offer.

There was fresh issue of 60.18 crore shares while the government sold more than 18.51 crore scrips.

A total of around Rs.7,000 crore were raised through the sale, from which the government earned Rs.1,600 crore.

Following the FPO, government's holding in the company has come down from 69.42 percent to 57.89 percent.

PGCIL shares closed Thursday at Rs.99.25, down 0.85 points, or 0.85 percent, over its previous close on the Bombay Stock Exchange (BSE).

--Indo-Asian News service

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