Sunday, September 02, 2007


Type of Issue : Book Built
Issue Opens: 10 September, 2007
Issue Closes: 13 September, 2007
Issue Size : 573,932,895 (No. of Shares)

Lower Price Band: Rs.44
Upper Price Band: Rs.55
Total Issue Size: Rs. 2,984 Crores

Application Multiple: 125 and in multiples there off starting with at least 125 shares.

Maximum Shares: 1875 (for Retail)

Information URL :
Prospectus URL :

Company Details :


Email :

Contact Details : 911126560112 /911126564849 (fax)

ISSUE Description:

Company Background

PGCIL is a Mini-Ratna category- I public sector undertaking. Power grid Corporation is India’s principal electric power transmission company. It owns and operates a large network of transmission lines and infrastructure that constitutes most of India’s inter-state and inter-regional electric power transmission system and carries electric power across India.

Since inception, the company has company has completed 101 transmission projects and schemes, valued at approximately Rs.25,181corore. As on June 30, 2007, it owned and operated 61,875 circuit kilometers of electrical transmission lines and 106 electrical substations. In FY 2007, PGCIL transmitted approximately 298 billion units of electricity, representing approximately 45% of all the power generated in India. The company operates as one of the chief agencies responsible for the planning and development of the country’s nationwide power transmission network, including inter-state networks.

PGCIL has also diversified into the consultancy business. Since FY 1995, its consultancy division has provided transmission-related consultancy services to more than 90 clients in over 225 domestic and international projects.
PGCIL has also branched out into the telecommunications business, by creating a telecommunications network principally using its overhead transmission infrastructure. It owns and operates a fiber-optic cable network that, as on June 30,2007, was over 19000 kilometers long and connected over 60 Indian cities, including ass major metropolitan areas. PGCIL has been leading bandwidth on this network to more than 60 customers, including major telecom operators such as BSNL, VSNL Tata Teleservices limited, reliance communications limited and Bharti Airtel limited.

Object of the Issue:

The Issue proceeds shall be utilized 15 identified transmission projects of the company. These projects include strengthening of its existing lines/grids, establishing new transmission lines, connecting new transmission lines, and implementation of the National Load Despatch Center (“NLDC”). The Transmission Projects a expected to enhance the company’s transmission system by 13,022 circuit kms.

Key Financials for the year ended March 31, 2007
Revenue Rs.40,823.09Mln, PAT Rs.12,293.71Mln, EPS Rs.2.90, RoNW 10.16%

Recommendation :

PGCIL holds a leadership position in the Indian Transmission Sector with no competitor of significant size. A compelling Investment opportunity into a Mini-Ratna company.