The initial public offer of PowerGrid Corporation of India Ltd (PGCIL), the country?s biggest transmission utility, got subscribed over 21 times on its last day of issue. The issue received bids for 3,416.20 crore equity shares against 57.39 crore shares on offer, latest data available on the stock exchanges show.
The company is expecting to raise up to Rs 3,000 crore through its issue, for which the price band has been fixed between Rs 44 and Rs 52 a share. The issue has received robust response in the qualified institutional buyers (QIB) category especially from the foreign institutional investors (FIIs).
The proceeds would be used to part finance 15 projects that entail a total investment of Rs 12,280 crore. PGCIL owns and operates 61,875 circuit kms of transmission lines. The proposed 15 projects would enhance its transmission system by 13,022 circuit km.
The company currently has inter-regional electricity transfer capacity of around 14,000 mw and plans to scale it up to 37,000 mw. PGCIL is the third central power utility to tap the capital market to raise funds.