PowerGrid board okays FPO plan

However, this would not be an equity dilution by the government as the company would be issuing 10 per cent fresh equity. At the current share price of Rs 113.20, the company can raise over Rs 4,700 crore.

The city-based PowerGrid is planning to hit the markets by September.
“At a meeting on January 25, our board of directors approved a follow-on public offer of 10 per cent fresh equity which is expected to hit the market by September,” PowerGrid Chairman & Managing Director S K  Chaturvedi told PTI here.

“We have planned to raise over Rs 3,500 crore. But going by the current stock price, we may end up raising more than that,” he said, adding, “since this approval would require Government nod, we would soon send a proposal to the power ministry.” The Government holds 86.36 per cent stake in PowerGrid, which has an equity base of 4,20,88,41,230 shares.

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