Power Grid IPO subscribed nearly 65 times

The initial public offer of state-run Power Grid Corporation of India (PGCIL) received bids for nearly 65 times of the issue size, generating demand for a record-smashing Rs 1,95,000 crore worth of shares.

The country's biggest transmission utility's IPO received bids for 3,719.76 crore equity shares against the 57.39 crore shares on offer, as per the latest data available on the bourses. This is 64.81 times of the issue size.

The company is expecting to raise up to Rs 3,000 crore through its issue, for which the price band has been fixed between Rs 44 and Rs 52 a share.

The proceeds would be used to part finance 15 projects that entail a total investment of Rs 12,280 crore. PGCIL owns and operates 61,875 circuit kms of transmission lines.

The proposed 15 projects would enhance its transmission system by 13,022 circuit km.

The company has inter-regional electricity transfer capacity of around 14,000 MW and plans to scale it up to 37,000 MW.

PGCIL is the third central power utility to tap the capital market for raising funds after NTPC Ltd in 2004 and Power Finance Corporation early this year.

As in the case of NTPC and PFC, the government will piggyback on PGCIL IPO to divest five per cent of its stake. While NTPC had raised around Rs 5,400 crore, PFC had mopped up nearly Rs 1,000 crore.