Bihar State Power Transmission Company (BSPTCL) has taken a formal step toward a potential stock market listing by inviting bids to appoint merchant bankers for its proposed initial public offering (IPO).

The state-owned utility has issued a tender seeking a book-running lead manager to oversee the IPO process, signaling the Bihar government’s intent to explore capital markets as a funding avenue for its transmission infrastructure.

The tender calls for Securities and Exchange Board of India-registered Category-I merchant bankers to manage the end-to-end execution of the IPO.

The selected firm will be responsible for structuring the issue, handling regulatory compliance, preparing offer documents, advising on valuation, and coordinating investor outreach.

The proposed IPO is expected to include a mix of fresh equity issuance and a potential offer-for-sale, enabling the state government to partially divest its stake while raising new capital. The issue may also include reservations for employees and other investor categories in line with regulatory guidelines.

The last day to submit the bids is May 13, 2026. The bids will be opened on May 15.

BSPTCL, a wholly owned subsidiary of Bihar State Power Holding Company, is responsible for the development, operation, and maintenance of the state’s electricity transmission network.

If completed, the IPO would position BSPTCL among the very few transmission utilities in India to access public markets. At present, most state transmission utilities remain unlisted, with Power Grid Corporation of India being the only major publicly traded transmission utility in the country. BSPTCL’s listing would therefore mark a significant milestone in opening up state-level transmission assets to private investors.

The proposed listing comes at a time when India is planning a massive expansion of its transmission infrastructure to support its energy transition. The Central Electricity Authority has outlined a plan to add 137,500 circuit km of transmission lines and 827,600 MVA of substation capacity at an estimated cost of ₹7.93 trillion (~$84.33 billion) to integrate over 900 GW of non-fossil fuel capacity by 2035–36. The scale of this expansion is expected to require significant capital investment across both interstate and intrastate networks, creating a strong case for utilities to tap market-based financing.

The development also reflects a broader shift underway in India’s power sector, where state-owned utilities are increasingly exploring restructuring and market-based financing mechanisms. In Maharashtra, for instance, the state government has approved the bifurcation of Maharashtra State Electricity Distribution Company and cleared a proposal for its IPO. As part of the restructuring, a separate entity, MSEB Solar Agro Power, will be carved out to supply electricity to agricultural consumers, while the remaining distribution company will serve industrial, commercial, and residential customers.