Mumbai, Aug. 28: Powergrid Corporation of India Ltd will float an initial public offering (IPO) of 573,932,895 equity shares of Rs 10 each. The price band has been fixed between Rs 44 and Rs 52 per equity share. The offer constitutes about 13.64 per cent of the fully diluted post-issue capital of the company.

The proceeds of the IPO would be partly utilised to fund 15 power transmission projects, which require about Rs 6,844.7 crore over a period of three years.

The offer comprises a net issue to the public of up to 559,954,895 equity shares and another 13,978,000 have been reserved for subscription by company employees.

PowerGrid would raise about Rs 2,525.3 crore at the lower end and about Rs 2,984.5 crore at the upper end through the issue. The company would get listed on exchanges by October 4. However, the government would continue to hold an 86.36 per cent stake in the company after the issue.

The company is implementing 15 transmission projects, involving an investment of Rs 12,707.5 crore. It has already spent Rs 5,862.8 crore and requires another Rs 6,844.7 crore. The projects, which would be funded with a debt-equity ratio of 70:30, are aimed at strengthening and expanding the transmission lines and grids.

PowerGrid would invest about Rs 55,000 crore over a period of five years to enhance its power transfer capacity to over 37,000MW from 14,100MW by 2012.

This amount will be spent on 45 power projects, which are in the pipeline to develop the transmission infrastructure of the country.