Oct 05: Shares of Power Grid Corporation of India on Friday touched Rs.90 after being issued at Rs.52 (initial public offer) at National Stock Exchange. Shares of the grid corporation got listed at Rs. 82 at BSE Bombay Stock Exchange but within minutes of appearing on the list it crossed Rs. 100 against the issued price of Rs. 52.
PGCIL which started its operations of transmission of electricity all over India in 1992 is the principal electric power transmission company transmitting almost 45% of the all power generation of India. Corporation owns most of India’s interstate and inter-regional electric power transmission systems.
Quick upsurge in the prices of the shares of the ‘mini ratna status’ company especially on Friday is credited to the power sector’s growth and its entry into the telecom and consultancy.
The capital raised through 57.39 crore equity shares is to finance the company’s various projects to enhance its transmission sector which demands the investment of around 12,280 crore.
Power Grid Corporation of India ltd is not the first company from the sector to raise capital through equity shares but just following the steps of NTPC and PFC which started this operation this year only.
Revealing the further plans of the company, the chairman of the company said that company plans to expand its telecom and consultancy business to increase he return on equity from the present one. Its telecom and consultancy services are supposed to contribute around one fifth of the revenue.
Heavy capital is needed to finance the transmission capacity as India aims to generate power almost 60% of its present capacity.
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