Millennium Post
Business

CCEA likely to take up PowerGrid follow-on public offer today

The Cabinet Committee on Economic Affairs may on Thursday take up the Power Ministry’s proposal for a follow-on public (FPO) offer of state-run Power Grid Corporation, which is expected to mop up over Rs 7,500 crore. According to sources, the proposal is likely to be considered during the CCEA meeting on Thursday.

The follow-on public offering will comprise 13 per cent fresh equity by the public sector company and 4 per cent stake sale by the central government. The company will issue fresh 60.18 crore shares through the offer and a part of it would be reserved for the employees.

Meanwhile, the Department of Disinvestment has invited applications from merchant bankers for the proposed FPO. The government proposes to dilute 4 per cent stake, or 18.51 crore shares, out of its current 69.42 per cent holding. At current prices, the government could get over Rs 1,782 crore from the disinvestment, while the company would get over Rs 5,793 crore from the sale of fresh equity.
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