State-owned transmission company Power Grid Corp of India plans to sell up to 10% of its equity through an initial public offering starting in October.

Power Grid intends to use the funds generated to install new infrastructure as part of its national grid development plans.

According to senior figures within Power Grid, an investment of Rs. 700 billion ($16.12 billion) is required by 2012 for the national grid, of which close to a third is expected to come from the private sector.

A 10% equity sale from Power Grid is estimated to earn the group Rs. 14 – 15 billion ($326 million) in the domestic stock market.

Shares are expected to open at around $1 each and the sale is likely to follow the National Thermal Power Corp initial public offering which comprised the government’s 5.25% stake and an equivalent amount of company issued.