A proposal for a follow-on public offer (FPO) of Rs 7,300 crore in Power Grid Corporation of India (PGCIL), later this financial year, has been cleared by the Union Cabinet on November 7. Power Grid is India's largest power transmission company.
This will include the raising of 13 per cent fresh equity by the company and a four per cent stake sale by the government.
The FPO is expected to fetch close to Rs 7,300 crore at the current price of the scrip. An official statement said that the FPO will help raise funds of the order of Rs 5,600 crore for the company to meet its investment programme for the next two financial years.