 "Centre to speed up PowerGrid stake sale, aims Rs 3,000 cr")
New Delhi: The government plans to speed up the process of raising up to Rs 3,000 crore by selling five percent stake in Power Grid Corp, even as the state-run company looks to raise fresh equity to fund its expansion activities, a Power Ministry official has said.
“The company may also raise some fresh equity to fund its expansion plans,” an official said.
The government, which currently holds 69.42 per cent stake in Power Grid, plans to sell 5 per cent stake in the company, which could fetch the exchequer over Rs 3,000 crore.[caption id=“attachment_1054071” align=“alignleft” width=“380”]
Stake sale in PowerGrid soon. Reuters [/caption]
Earlier this month, the Board of Directors of the company approved stake sale to the tune of 15 per cent of existing paid up share capital comprising fresh issue of 69,44,58,802 equity shares.
The proposal is subject to necessary regulatory approvals.
The mode of disinvestment may be offer for sale (OFS). The offer-for-sale method was introduced by market regulator Sebi early this year and allows companies to sell shares in a simplified process on the stock market platform through a one-day bidding process.
PowerGrid is engaged in power transmission business with the responsibility for planning, coordination, supervision and control over inter-state transmission system and operation of national and regional power grids.
The government has targeted Rs 40,000 crore by way of PSU stake sales this fiscal year has raised about Rs 1,000 crore so far.
PowerGrid reported a net profit of Rs 1,040.34 crore in the April-June quarter of the current financial year. The total income of the company climbed to Rs 3,634.03 crore during the period.
Shares of the company closed at Rs 98.15 apiece, up 0.62 percent from their previous close on the BSE.
PTI