Electricity transmission company PowerGrid Corporation may sell 20% to public that could raise Rs 8,000 crore, which may be equally split between the government and the company,said two people familiar with the plans.The government plans to sell 10% and Power Grid will issue new shares comprising 10% of post-issue capital to raise funds for expansion, which is estimated at Rs 55,000 crore, they added. The fund-raising target is a calculation based on current market price. The power ministry has approved the issue and the company is currently preparing the documents for inviting expression of interest from investment bankers, said the first official privy to the development.
Finance minister Pranab Mukherjee has pencilled in revenues of Rs 40,000 crore from sale of stakes in government enterprises this fiscal year.Scores of companies such as trading firm MMTC and Hindustan Copper are slated to raise funds following a change in minimum public holding rule which mandates 25% public float. Estimates show that it could lead to more than Rs 1.5 lakh crore of fund-raising in the next few years. Investor response to state-run companies have been mixed depending on the pricing of the issue. While follow-on offers such as miner NMDC and utility NTPC received lukewarm response, hydro-power generator Satluj Jal Vidyut Nigam’s initial public offering(IPO) for Rs 1,079 crore was over-bid.
Investments in near monopoly Power Grid which sold shares in an initial offer in 2007, have doubled. After the share sale, government’s stake will fall to 67% from 86.36%. Its shares ended 1.16% lower at Rs 102.25, with a market value of Rs 43,000 crore. 
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