PowerGrid to hit capital market in 6-8 months

PowerGrid Corp said on Wednesday it will hit the capital market with its follow-on public offer in the next 6-8 months.

"Our FPO can be expected in the second quarter of the next financial year (2010-11)," CMD PowerGrid Corporation, S K Chaturvedi, told reporters in New Delhi.

The company plans to raise Rs 3,000 crore (Rs 30 billion) through this offer.

The FPO would comprise partial stake sale by the government and also issue of some fresh equity.

"We plan to raise some fresh equity through this FPO but how much I cannot say right now. . .power ministry will take up our FPO after it is done with NTPC and REC," Chaturvedi added.

The government holds 86.36 per cent stake in PowerGrid Corp. Earlier, the company had indicated plans to infuse 15 per cent fresh equity through the forthcoming FPO.