At the end of the second day of the FPO, the follow-on public offer (FPO) of India’s one of the largest inter-state transmission company Power Grid Corporation received a remarkable response from QIB’s and institutional investors and has been oversubscribed 3.61 times. Power Grid Corp opened for subscription of 841,768,246 equity shares of face value of Rs. 10 each for cash in a price band of Rs.85 to Rs.90.
Against issue size of 841,768,246 shares, the issue received bids for 303.7 crore equity shares, as per data obtainable on the National Stock Exchange at closing. About 30969510 equity shares have been bid at cutoff price out of these applications.
- The Non Institutional Investors portion of the issue has been subscribed 0.16 times.
- The portion reserved for Qualified Institutional Buyers (QIBs) has received subscription of 7.03 times.
- The Retail Individual Investors (RIIs) portion of the issue has received subscription of 0.24 times with bids.
The company’s chairman and managing director, SK Chaturvedi said on Monday, India’s state-run Power Grid Corp has earmarked capital expenditure of USD 27 billion for 2012-2017, more than double its capex budget in its current five-year plan.
By the President of India acting through the Ministry of Power, Government of India, the issue consist of a fresh issue of 42,08,84,123 shares and an offer for sale of 42,08,84,123 shares, which is 20% offer in total. Currently the company has capacity of 75,000 circuit kms and plans to add 8,000 circuit kms in FY11. The book running lead managers to the issue are SBI Capital Markets Ltd, Goldman Sachs (India) Securities Pvt Ltd, ICICI Securities and JP Morgan India Pvt Ltd.
The issue closes for qualified institutional buyers on November 11 and for non-institutional and retail investors on November 12. To final issue price, retail investors and employees will get equity shares at 5% discount. The minimum bid quantity is 65 Equity Shares and in multiples of 65 shares thereafter. For 13 transmission projects costing Rs 22,600 crore, the FPO proceeds will be used. Various brokerages and analysts have suggested that investors should subscribe to Power Grid FPO.
About Power Grid Corporation
Power Grid Corporation of India Limited (PGCIL) is Indian government owned, public sector enterprise integrated in 1989. PGCIL owns and operates a big network of transmission lines and infrastructure that constitutes most of India’s interstate and inter-regional electric power transmission system and carries electric power all over India. POWERGRID has established a transmission network of about 69,480 circuit kms and 116 sub-stations having over 77,217 MVA transformation capacities since 1992. It has attained many milestones & established benchmarks in different areas of its business operations and now plays a strategic role in the Indian Power Sector in establishing & maintaining the transmission infrastructure. From 1st May, 2008, the Government of India conferred the status of “Navratna” to POWERGRID.
Contact details and address:
Registered Office: “Saudamini”, Plot No.2, Sector 29, Gurgaon 122 001, Haryana, India
Phone: +91 (124) 2571 700
Fax: +91 (124) 2571 848