Power Grid Corporation of India FPO to hit market on December 3; price band at Rs 85-90 per share

Press Trust of India Posted online: Saturday, Nov 30, 2013 at 0000 hrs
New Delhi : The follow-on-public offer (FPO) for 17 per cent stake sale in Power Grid Corporation of India (PGCIL) will hit markets on December 3 which is expected to fetch Rs 7,083 crore to the exchequer.

“The issue opens on December 3 and closes on December 5 for institutional investors and December 6 for retail category of investors and employees,” an official statement said. The price band for the issue has been fixed at Rs 85-90 a share, PGCIL said in a filing to the BSE.

Shares of PGCIL closed at Rs 95.05, up 0.69 per cent on the BSE. The sale of 78.70 crore shares 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 will get around Rs 1,758 crore. The Empowered Group of Ministers on disinvestment, headed by finance minister P Chidambaram, today decided on the date and pricing for the FPO of the state-owned PGCIL.

Earlier this 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 will sell 18.51 crore shares in PGCIL, while the company will issue fresh 60.18 crore shares through the offer.