Mahatransco Plans ₹10,000 Crore IPO To Become India’s First Listed State-Owned Power Transmission Firm

Maharashtra State Electricity Transmission Company Ltd (Mahatransco), the state-owned power transmission utility, is preparing plans to raise up to ₹10,000 crore through an initial public offering (IPO), according to a report by Moneycontrol.

If completed, the share sale will mark the first IPO by a state government-owned electricity transmission company in India.

The proposal is currently at an early stage, with Mahatransco in the process of selecting investment banks and legal advisers for the transaction.

The final size and structure of the issue will be decided closer to the filing of draft offer documents. The IPO is expected to value the company at around ₹40,000-50,000 crore, sources said.

IPO may include fresh issue and offer for sale

The proposed public offering could comprise a combination of new equity shares issued by Mahatransco and an offer for sale by its parent company, MSEB Holding Company Ltd.

The company had earlier invited bids from merchant bankers to manage the IPO process. According to the request for proposal, Mahatransco may appoint six investment banks for the transaction, although it retains the option to select a smaller or larger group of advisers.

Eligible merchant bankers will make presentations between September 15 and September 17, while the deadline for submitting bids was September 7.

Mahatransco joins Maharashtra power IPO plans

Mahatransco’s IPO plans come alongside Maharashtra State Electricity Distribution Co Ltd (Mahavitaran), which has also started preparations for a potential public issue. Mahavitaran recently appointed investment banks for an IPO that could raise between $500 million and $1 billion, according to reports.

Currently, only a limited number of state government-backed companies are listed on Indian stock exchanges.

These include Gujarat Energy, Gujarat Alkalies and Chemicals, Gujarat Mineral Development Corporation, Tamil Nadu Newsprint and Papers, Punjab Communications and Jammu & Kashmir Bank.

While central government-owned power companies such as NTPC, NHPC and PowerGrid are publicly listed, state-owned electricity transmission and distribution companies have largely remained unlisted.

Mahatransco and Mahavitaran could therefore become the first listed state-owned transmission and distribution utilities in India. The company has also invited proposals from law firms for legal advisory roles related to the IPO, with presentations scheduled for October 6 and October 7.