Power Grid issue subscribed 69 pct on first day of FPO

Dec 03 2013, 21:21 IST
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The follow-on-public offer (FPO) of Power Grid Corporation of India (PGCIL) was subscribed 69 per cent on the opening day. Reuters The follow-on-public offer (FPO) of Power Grid Corporation of India (PGCIL) was subscribed 69 per cent on the opening day. Reuters
SummaryShares of PGCIL closed at Rs 93.75, up 0.37 per cent on the BSE Sensex.

The follow-on-public offer (FPO) of Power Grid Corporation of India (PGCIL) was subscribed 69 per cent on the opening day today.

Of the 78.70 crore shares offered for sale, total bids for 54.32 crore shares were received, as per the data available on the bourses.

As many as 72.98 lakh bids came at the cut off price of the issue.

The shares are being offered at a price band of Rs 85-90 apiece and the issue would remain open till December 5 for institutional buyers and December 6 for retail investors.

Shares of PGCIL closed at Rs 93.75, up 0.37 per cent on the BSE.

The sale of 78.70 crore shares, or 17 per cent stake, could fetch around Rs 7,083 crore at the upper end of the price band. The company may garner close to Rs 5,717 crore, while the government may receive around Rs 1,758 crore.

Last month the Cabinet had cleared the FPO of PGCIL, which will comprise 13 per cent fresh equity by the company and 4 per cent stake sale by the central government.

The government is selling 18.51 crore shares in PGCIL, while the company is issuing fresh 60.18 crore shares through the offer. Of the fresh shares, about 2.4 per cent will be reserved for the employees.

As much as 50 per cent of the net issue is allocated to Qualified Institutional Buyers (QIBs), 35 per cent for retail category and 15 per cent for High Network Investors (HNI). Above 0.38 per cent of the issue is reserved for employees.

Retail category and employees shall be given a discount of 5 per cent on the issue price.

The government holding in the company will come down to 57.89 per cent from the present level of 69.42 per cent.

Citigroup, ICICI Securities, UBS, SBI Caps and Kotak Mahindra are merchant bankers for the FPO.

This is the second follow-on offering from PGCIL, which sold a 10 per cent stake along with a similar stake divested by the government in November 2010 at an issue price of Rs 90 a share.

The company hit the capital market with initial public offering in October 2007.

So far in the current fiscal, the government has raised over Rs 1,300 crore through minority stake sale in PSUs.

It has set a target of Rs 40,000 crore from disinvestment in current fiscal.

Power Grid Corp plans to utilise proceeds worth over Rs 5,700 crore from

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