Power Grid lists fresh equity, share price falls in early trade

Written by PTI | Mumbai | Updated: Dec 19 2013, 21:48pm hrs
State-owned Power Grid Corp today said it would utilise the proceeds worth about Rs 5,400 crore from the follow-on public offer towards 27 transmission projects.

The additional equity issued in the FPO started trading on the bourses today even as the share price of the company fell to as much as Rs 96.15 in the morning session on the BSE.

On Wednesday, the scrip had closed at Rs 100.10.

Recouping losses, the scrip was trading almost flat at Rs 100 in the afternoon session.

On NSE too, the share touched a low of Rs 96.25 in the morning before rising to Rs 100 in the afternoon trade, the same as yesterday's closing price.

In the FPO entailing 78.70 crore shares, there was fresh issue of 60.18 crore equities while the government sold more than 18.51 crore scrips. A total of about Rs 7,000 crore was raised through the sale. Of this, the government garnered around Rs 1,600 crore.

Speaking to reporters after the listing of fresh shares, Power Grid Corp Chairman and Managing Director R N Nayak said the proceeds garnered by the company from the FPO would be utilised for expanding the company's network across the country.

"We have identified 27 projects, worth over Rs 48,000 crore, which we plan to complete in the next two years," he said.

Power Grid Corp sold shares in the FPO at a price of Rs 90 per piece while a discount of Rs 4.50 apiece on the issue price was given to retail investors and eligible employees.

The price band for the issue was fixed at Rs 85-90.

Following the FPO, government's holding in the company has come down from 69.42 per cent to 57.89 per cent.