Mumbai: PowerGrid Corporation of India Ltd (PGCIL) will invest Rs55,000 crore in the next five years to expand the national grid capacity to transmit 37,000 MW of electricity by 2012.

To part finance these projects, the central power transmission company is hoping to raise up to Rs3,000 crore through an initial public offer. The issue will open on September 10 and close on September 13, A R Agarwal, executive director, business development (PGCIL), said.

The issue comprises a fresh issue of up to 382,621,930 equity shares by the company and an offer for sale of up to 191,310,965 equity shares by government.

The issue shall constitute approximately 13.64 per cent of the fully diluted post- issue capital of the company. After the issue, the Government of India, through the ministry of power will continue to hold 86.36 per cent of the diluted post-issue paid-up equity capital of the company.

"The price band for the issue has been fixed between Rs44 and Rs52 per equity share," he said. The proceeds would be used to part-finance 15 projects that involving a total investment of Rs12,280 crore.

PGCIL, a mini-ratna category- I public sector undertaking, owns and operates 61,875 circuit km of transmission lines. The proposed 15 projects would enhance its transmission system by 13,022 circuit km. The company currently has inter-regional electricity transfer capacity of around 14,000 MW and plans to scale it up to 37,000 MW.

Power Grid Corporation of India owns and operates most of India''s interstate and inter-regional electric power transmission system. In that capacity, as at June 30, 2007 the company owned and operated 61,875 circuit km of electrical transmission lines and 106 electrical substations. In fiscal 2007, the company transmitted approximately 298 billion units of electricity, representing approximately 45 per cent of all the power generated in India.

The equity shares are proposed to be listed on the BSE and NSE. The book running lead managers to the Issue are: Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited and Enam Securities Private Limited.