Power Grid Corporation of India is preparing for its planned follow-on public offer (FPO), with a hope that the offer could be launched as soon as next month.

The government-run transmission utility giant on Thursday said that all the required procedures for the FPO had already been completed, and that it was just waiting for Cabinet's nod.

R N Nayak, chairman & managing director of Power Grid Corp, said, "We have completed all the necessary procedures from our side and can launch it as soon as possible. But we are awaiting the approval from the Cabinet Committee on Economic Affairs (CCEA)."

The Navratna firm has plans to offload its 17 per cent stake via the FPO route. Of the total 17 per cent stake, the government will sell 4 per cent stake, while the remaining 13 per cent will be in the form of fresh issue of equity shares.

The company will issue 60.18 crore shares, while the government will 18.51 crore shares as part of its massive divestment program that aims to generate Rs 44,000 crore for the government.

The offer is expected to generate around Rs 1,900 crore for the government, while Power Grid expects to garner nearly Rs 6,000 crore by selling fresh equities.