State-run Power Grid Corporation is coming up with a follow-on public offer to raise up to USD 1.9 billion. The follow-on public offer by the transmission utility comprises new shares of 10 percent equity by the company and sale of another 10% by the government.
The FPO will open on 9th November and will close on 12th November, 2010. Company has fixed price band of Rs 85-90.
The proceeds will be mainly utilised for constructing nine country-wide high capacity power transmission corridors costing USD 13 billion (Rs 58,000 crore).
Power Grid, which carries 45% of the power in the country, posted a 42% jump in net profit to Rs 650 crore for the September quarter.
We will recommend this FPO to investors for moderate listing gains.
Thursday, October 21, 2010