State-owned transmission major Powergrid Corporation of India Ltd is planning an initial public offering (IPO) later this year to raise around Rs.15 billion to fund its infrastructure expansion.

"On the lines of the National Thermal Power Corporation (NTPC) offering, we are planning to come out with an IPO to offer five to 10 percent of our equity. We are upbeat that our offering will raise around Rs.14-15 billion," R.P. Singh, chairperson and managing director of Powergrid, said at a press conference here Friday.

Singh declined to specify whether the offering would involve any dilution of government stake in the company through a mix of fresh float and equity stake divestment.

"We are contemplating discussing the proposal of IPO with the government and will assign the public offering proposal to consultants/bankers to study the proposal. The public offering is likely to be in September/October," he said.

Assigned the task of creating a national power grid capable of handling 30,000 MW capacity for transmission of power from surplus region to deficit areas, Powergrid's present equity is Rs.32 billion. It has reserves and surpluses of Rs.85 billion.

During 2004-05, the company registered a net profit of Rs.7.25 billion as against Rs.7.14 billion in the previous year.

Besides the national power grid, the company is planning to focus in a big way on improving rural power infrastructure.

The company currently has 50 transmission projects under implementation with an investment of about Rs.140 billion.

--Indo-Asian News Service