The Cabinet Committee on Economic Affairs (CEA), today, approved the follow-on public offer (FPO) of Power Grid Corporation of India Limited (PGCIL), which seeks to dilute 10% of Government of India's (GoI) stake in the central transmission utility. Around 84.17 crore equity shares of Rs 10, each, constituting 20% of its existing paid-up capital, have been proposed to be offered through the exercise. The offer involves fresh issue of 42,08,84,123 equity shares, equivalent to 10% of the existing paid-up capital of PGCIL, and sale of another 42,08,84,123 shares held by GoI. The Board of Directors of the PGCIL approved the issue, at its meeting held on July 2, 2010.According to the latest data, around 3,63,49,08,335 shares of PGCIL are held by GoI, while the public-holding amounts to 57,39,32,895 shares. The transmission enterprise, in September 2007, raised Rs 2,985 crore through its initial-public offer (IPO), which was oversubscribed 65 times. The company intends to raise, approximately, Rs 3,000 crore through the current offer. PGCIL has proposed an investment of Rs 55,000 crore during the ongoing Plan period, to add about 67,000 ckt. km of lines and around 90,000 mega-volt-ampere (MVA) of transformer capacity.
Additional resources generated through the offer will be utilized by PGCIL in its investment programmes. The utility has, recently, also announced its intentions to invest Rs 50,000 crore, for developing seven transmission corridors over the next five years, to facilitate transmission of around 55,000 MW power that would be generated by the upcoming independent power projects (IPP) and merchant power projects (MPP) in the states of Chhattisgarh, Orissa and Jharkhand. PGCIL wheels about 45% of the total power generated in the country via its transmission network. The transmission utility has a pan India presence, with around 77,000 ckt. km of transmission lines and 124 high voltage and extra-high voltage sub-stations, with a total capacity of 89,000 mega-volt ampere (MVA).
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