Power Grid FPO subscribed 1.72 times

Gets bids for 144.62 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 1.72 times by 16:00 IST on day two today, 10 November 2010. The FPO garnered bids for 144.62 crore shares against 84.17 crore on offer.



The FPO is priced 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 last day of bidding for qualified institutional buyers is 11 November 2010 while for non-institutional, retail and employees is 12 November 2010.

The issue comprises a 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 102 on Wednesday, 10 November 2010 on the BSE.