Power Grid FPO subscribed 14.37 times

Gets bids for 1209.96 crore shares against 84.17 crore on offer

The follow-on public offer (FPO) of the state-run transmission firm Power Grid Corporation of India was subscribed 14.37 times by 16:00 IST on fourth and the final day of bidding today, 12 November 2010. The FPO garnered bids for 1209.96 crore shares against 84.17 crore on offer.



Bidding by qualified institutional buyers (QIB) which closed on 11 November 2010 was subscribed 18.52 times. Bidding by non-institutional, retail and employees concluded today, 12 November 2010.

The government had priced the FPO in the Rs 85-90 per share band. Retail investors and employees will get a 5% discount from the final price discovered through the book building route.

The issue comprised of fresh issue of 42.08 crore shares and an offer for sale of equal number of shares by the President of India acting through the Ministry of Power, Government of India, which is 20% offer in total. The ongoing issue constitutes 18.2% of the post issue paid-up capital of Power Grid Corporation of India. Post FPO, the government's holding in the company will decline to 69.40% from the present 86.36%.

The Power Grid FPO is part of the government's plan to raise Rs 40,000 crore in the fiscal year ending March 2011 by disinvesting part stakes in state-run firms.

Power Grid will use the funds raised from the FPO for part funding capex plan.

The company's shares are listed on the BSE and the NSE. It settled at Rs 99.60 on Friday, 12 November 2010 on the BSE