Bihar government is moving toward what might be India's first public listing of a state-owned power transmission firm. Punjab National Bank's investment advisory arm will steer the pre-IPO process for Bihar State Power Transmission Co. Ltd (BSPTCL),sources say.
The plan aims to pull in about ₹1,000 crore,with valuation expected over ₹10,000 crore. Punjab National Bank landed the advisory role after BSPTCL's April request for bids from merchant bankers,emerging as the lowest bidder.
The initial work with PNB Investment Services Ltd will assess BSPTCL's financial readiness and optimize its capital structure. This step is crucial before picking book-running lead managers,a decision due in weeks. Offer document prep will likely start in three to six months.
The IPO will feature both new equity shares and an offer for sale (OFS) by Bihar government. Fresh issue funds will boost state transmission projects, while OFS lets government monetize part of its BSPTCL stake.
To back its ambitious ₹16,194 crore expansion, the utility plans to beef up network capacity,fortify intra-state corridors,and meet rising power demand. By March 31, 2025,BSPTCL had assets of ₹21,112 crore and liabilities of ₹6,471 crore,fully owned by Bihar State Power (Holding) Co.
While sources confirm the move, they warn that share sale size and valuation might shift based on merchant banker advice. Bihar energy officials and PNB's advisory arm declined comment.
As Bihar braces for a power demand spike in coming years,IPO plans gain steam. In a March 2026 video interview,ex-Bihar energy secretary Manoj Kumar Singh called IPO natural step for BSPTCL, citing a decade of steady profits . He urged public participation in its growth.
In FY25,BSPTCL's net profit soared nearly sixfold to ₹286 crore from ₹49.5 crore year before. Revenue jumped 47% to ₹1,785 crore. FY26 numbers aren't out yet.
Singh noted Bihar's peak power demand hit about 8,800 MW last year,with forecasts up to 9,500 MW this year. By 2030,demand could top 13,000 MW,driven by commercial and industrial growth. This expected surge makes BSPTCL's expansion and public listing strategic moves.
