The government today fixed the price band at Rs 85-90 per share for the Rs 7,600-crore follow-on public offer (FPO) of state-run transmission company Power Grid Corporation of India. Power Minister Sushilkumar Shinde said so after a Group of Ministers meeting.
The FPO comprises over 840 million equity shares of Rs 10 each, constituting 20 per cent of existing paid-up capital. At the upper end of the price band, the issue will fetch up to Rs 7,600 crore.
The follow-on public offer of the company hits the market on Tuesday. The bid closes on November 11 for institutional investors and on Friday for retail 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.
Meanwhile, the company has lined up a total estimated fund expenditure of Rs 22,649.39 crore to meet the capital requirements for implementation of 12 identified projects.
