The govt fixed price band at Rs 85-90 per share for about Rs 7,600 crore follow-on public offer of state-run transmission company Power Grid Corporation of India.

“The price band for PowerGrid has been fixed between Rs 85-90,” Power Minister Sushilkumar Shinde said after meeting of Group of Ministers in New Delhi on Sunday.

The FPO comprises over 84 crore (84,17,68,246) equity shares of Rs 10 each constituting 20 percent of existing paid-up capital.

At the upper end of the price band, the issue will fetch up to Rs 7,600 crore.

The follow-on public offer of the company hits the market on 9th November.

The bid closes on 11th November for institutional investors and on 12th November for retail and non-institutional bidders.

The company plans to raise 10 percent fresh equity, while the government is likely to offload 10 percent of its 86.36 percent stake in PowerGrid.

Besides disinvestment of the government stake, the fresh capital raising would be used for part funding investment requirement of about Rs 58,000 crore of the PSU.

The PSU has already tied up 86 percent of the funds required for its capex plan and the remaining amount will be raised through the FPO and bonds issues.

The company aims to augment transmission capacity to 23,400 MW in the current fiscal from 19,800 MW at present.

On the transmission side, the company had been awarded Rs 7,000 crore worth of projects. It hopes to bag projects worth Rs 14,000 crore in FY’11.

The company had hit the capital market in October, 2007, with its maiden public offer.

The government had divested 5 percent of its stake in the company at that time.