Central transmission utility PowerGrid Corp said on Saturday it plans to invest Rs 55,000 crore (Rs 550 billion) in the next five years to expand the national grid capacity to transmit 37,000 MW of electricity by 2012.
To part finance these projects, PGCIL is hoping to raise up to Rs 3,000 crore from its initial public offer. "The price band for the issue has been fixed between Rs 44 and Rs 52 per equity share," PGCIL Chairman and Managing Director R P Singh told reporters.
The issue, which opens on September 10, would mop up Rs 2,525 crore (Rs 25.25 billion) at the lower end and Rs 2,984 crore (Rs 29.84 billion) at the upper end. Along with the IPO, the government is selling 5 per cent of its existing shares in the company.
The proceeds would be used to part-finance 15 projects that entail a total investment of Rs 12,280 crore (Rs 122.8 billion).
"These projects are to be funded in a debt-equity ratio of 70:30.
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