MahaTransco picked Axis Capital to lead a $1 billion IPO, aiming for a June 2027 listing. The state utility plans to use the funds to expand its power network as electricity demand rises. Other banks like SBI Capital Markets and CLSA will also help manage this major share sale process.
Summary
Maharashtra's state transmission utility is said to have selected a syndicate of merchant bankers for a share sale expected by June 2027, as electricity demand rises and state-backed IPOs gather pace.
Maharashtra State Electricity Transmission Co. (MahaTransco), the power utility owned by the state's electricity board, has reportedly picked Axis Capital Ltd to lead a planned initial public offering (IPO) expected to raise around ₹10,000 crore (about $1 billion), according to two people familiar with the matter.
Besides Axis Capital, MahaTransco is also likely to have selected a syndicate of merchant bankers, including SBI Capital Markets, CLSA and Bank of Baroda, to work on the transaction, the people said, asking not to be identified as the details remain private.
The transaction, expected to comprise a mix of fresh issue and offer for sale, marks an effort by the Maharashtra government to monetize state infrastructure assets. The share sale is scheduled to take place by June 2027, the people said.
An official list of book-running lead managers has not yet been disclosed or confirmed by MahaTransco. Emails sent to the company, Axis Capital, CLSA, Bank of Baroda and SBI Capital Markets seeking comment did not immediately elicit responses.
Grid expansion
MahaTransco owns and operates most of Maharashtra's electricity transmission system. It runs a network spanning 51,518 circuit kilometres of transmission lines and 742 extra-high-voltage substations, making it the country's largest state transmission utility.
According to the latest full-year financial statements available on its website, the company reported revenue of ₹6,554 crore in FY25 and net profit of ₹1,883 crore.
Moneycontrol reported on 9 September that the utility's IPO was likely to value the company at around ₹40,000 crore to ₹50,000 crore.
The proposed listing comes as Maharashtra's electricity demand rises. The Times of India reported on 11 October that the state's peak electricity consumption reached 32,389 MW on 8 October, 25% higher than a year earlier. Under the state's 2024 resource adequacy plan, peak demand is projected to rise to 46,396 MW by 2034.
The IPO could add to the funding options available to the state's power infrastructure sector as it prepares for higher demand and the need to expand transmission capacity. Public equity issuances in the sector can help finance grid expansion, renewable energy integration and system modernization, depending on how the proceeds are allocated.
State utility pipeline
MahaTransco's IPO is the latest addition to India's primary-market pipeline, where state-backed energy and infrastructure companies are exploring public listings to fund capital expenditure and grid expansion.
The Maharashtra State Electricity Distribution Co. has also appointed six investment banks for an IPO that could raise more than $500 million.
Mint reported on 27 July that the Bihar government had appointed the investment advisory arm of Punjab National Bank to steer the pre-IPO process for Bihar State Power Transmission Co. Ltd (BSPTCL). The proposed share sale is expected to raise at least ₹1,000 crore at a valuation of more than ₹10,000 crore.
State government-backed companies remain relatively few on Indian stock exchanges, with most of the listed entities being undertakings of Gujarat's state government.
The wider IPO pipeline is substantial. About 144 companies awaiting IPOs hold valid regulatory approvals, representing ₹1.75 trillion in cleared capital, and are waiting for suitable launch windows. The total mainboard pipeline comprises 200-250 companies targeting combined fundraising of up to ₹5 trillion.