Power grid fpo price band fixed at 85-90 Rs by govt | powergrid fpo price band

power grid fpo price band fixed at 85-90 rs by govt | powergrid fpo price band

New delhi, nov 7 (pti) the government today fixed price band at rs 85-90 per share for approximately rs 7,600 crore follow-on populace offer of state-run transmission company power grid corporation of india.
“the price band for powergrid has been fixed amidst rs 85-90,” power minister sushilkumar shinde said after meeting of group of ministers here.
The fpo comprises over 84 crore (84,17,68,246) equity shares of rs 10 every constituting 20 per cent of existent paid-up capital. At the upper end of the price band, the issue will fetch up to rs 7,600 crore.
The follow-on populace offer of the company hits the market on november 9. The bid closes on november 11 for institutional investors and on november 12 for merchandising and non-institutional bidders.
The company plans 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.
Beside disinvestment of the government stake, the fresh capital raising would be employed for share funding investment requisite of in regards to rs 58,000 crore of the psu.
The psu has already tied up 86 per cent of the funds required for its capex plan and the remaining amount are going to be raised through the fpo and bonds issues.
The company aims to enlarge or increase transmission ability to 23,400 mw in the current fiscal from 19,800 mw at present.
On the transmission side, the company had been awarded rs 7,000 crore worth of projects. It hopes to bag projects worth rs 14,000 crore in fy”11.
The company had hit the capital market in october, 2007, with its maiden populace offer. The government had divested 5 per cent of its stake in the company at that time.

Source: msn

Posted by musicking on Nov 7 2010. Filed under Business news. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry