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Updated: 08/08/2008 | 12:00 AM IST
New initiative does not benefit Power Grid Corporation
Capital Market
Friday, August 08, 2008 (New Delhi)
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Power Grid Corporation of India declined 0.50% to Rs 99.05 at 10:29 IST on BSE even as the company formed a joint venture with Teesta Urja for developing transmission system to evacuate power from Teesta-III hydro electric project in Sikkim.

The company made this announcement after trading hours on Thursday, 7 August 2008.

Meanwhile, the BSE Sensex was down 119.83 points, or 0.79%, to 14,997.42.

On BSE, 1.49 lakh shares were traded in the counter. The scrip had an average daily volume of 10.72 lakh shares in the past one quarter.

The stock hit a high of Rs 102.40 and a low of Rs 98 so far during the day. The stock had hit a 52-week high of Rs 167.45 on 19 November 2007 and a 52-week low of Rs 70.60 on 2 July 2008.

The large-cap company had outperformed the market over the past one month till 7 August 2008, gaining 18.09% compared to the Sensex’s return of 8.26%. It had also outperformed the market in the past one quarter, declining 2.26% compared to Sensex’s decline of 9.68%.

The company has an equity capital of Rs 4208.84 crore. Face value per share is Rs 10.

The current price of Rs 99.05 discounts its Q1 June 2008 annualised EPS of Rs 2.91, by a PE multiple of 34.04.

Power Grid Corporation will hold 26% stake in the joint venture company (JVC) and Teesta Urja will hold the balance 74% stake. The project would be built up on build, own & operate (BOO) basis.

In April 2008, Power Grid Corporation raised close to $1 billion via loans from Asian Development Bank and The World Bank.

On 31 March 2008, the company raised close to $1 billion via loans from Asian Development Bank and The World Bank.

Power Grid Corporation of India (PGCIL)’s net profit fell 32.4% to Rs 305.69 crore on 32.7% increase in net sales to Rs 1294.03 crore in Q1 June 2008 over Q1 June 2007.

Power Grid Corporation of India owns and operates most of India’s inter-state and inter-regional electric power transmission system.

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