Power Grid Corporation of India Ltd would enter the capital markets on September 10, 2007, with an Initial Public Offering (IPO) of  around 57.4 crore equity shares of Rs 10 each, the company announced here on Thursday.
   The price band has been fixed between Rs 44 to Rs 52 per equity share and the issue would close on September 13, 2007.The issue constitutes approximately 13.64 per cent of the fully diluted post-issue capital of the company and with this the government stake in the company would come down to 86.36 per cent. The issue comprises a fresh issue of up to 38.3 crore equity shares and an offer for sale up to 19.1 crore equity shares by the government.
Business strategy
Speaking at the occasion, Executive Director (Business Development), Power Grid Corporation of India Ltd, AR Agarwal said the issue proceeds would be utilised to meet the capital requirement for the implementation of 15 identified transmission projects and also for general corporate purposes. The estimated cost of these projects is around Rs 127, 075 million, he informed.
Agarwal said the company would invest Rs 55,000 crore during the next five years, adding that the company aims to increase its inter regional capacity to 37,000 MW by 2012 from the current 14,100 MW. Power Grid has signed a JV with Tata Power, Torrent Power and Jaipraksah Hydro-power,  Executive Director Agarwal said.