PowerGrid gets shareholders' nod to raise FPI shareholding limit to 35%

State-owned power utility Power Grid Corporation Thursday said that it has got shareholders' approval to raise shareholding limit of Foreign Portfolio Investor (FPI) to 35 per cent from 30 per cent at present.

The special resolution to increase in shareholding limit of Foreign Portfolio Investors (FPIs), including Foreign Institutional Investors (FIIs), limits in PowerGrid to 35 per cent is approved with the requisite majority, a BSE filing said.

At present, the FPIs/FIIs holding in PowerGrid is about 24 per cent.

Considering past FPI interest in the company stock, investor feedback in various fora and to attract foreign investments and have more headroom available for FPIs to invest in equity share capital of the company, it is proposed to increase the investment limit of FPIs from 30 per cent to 35 per cent of paid up equity share capital of the company, the power firm said in the proposal.

The company had increased the limit of FPI holding in equity shares of the company from 24 per cent to 30 per cent in the year 2013 with approval of shareholders.

Shareholders also approved the special resolution to alter the objects clause of its memorandum of association, to invest and/or act as Project Management Consultant in energy projects, to develop smart grid infrastructure and to develop electric vehicle charging infrastructure.

As per the proposal approved by the shareholders, considering growth prospects of the company, it had planned to diversify its business into other business fields like Information & Communication Technologies (ICT) infrastructure, Data Centre, Mobile Tower Infrastructure services, etc.

The company is already having experience in telecom, railway electrification, Smart Grid and project management consultancy.