DOHA: The Power Grid Corporation of India Ltd (PGCIL), a public sector power transmission company that owns and operates over 90 percent of the national transmission grid in India, has announced a follow-on public offer (FPO).
The issue opened yesterday and will close Thursday for Qualified Institutional Buyers (QIBs). The FPO comprises fresh issue of 601.8 million equity shares and an offer for sale of 185.2 million equity shares held by the government.
The objectives of the issue announced are to deploy Rs46bn towards development of 27 transmission projects in fiscal years 2014 and 2015.
There is no lock-in or minimum holding period for investors. The price band for the issue is Rs85-90 per share. The offer would constitute 15.04 percent of the post-offer paid-up equity capital of the company.
On a consolidated basis, the gross fixed assets, revenues and net profits of the company have grown from $556m, $100m and $37m, respectively in 1993 to $12.9bn, $21.66bn and $681 m, respectively, in 2013.
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