NEW DELHI: The follow-on-public offer (FPO) of Power Grid
Corporation was fully subscribed on the second day today.
Of the 78.70 crore shares offered for sale, the total number of bids received was 78.61 crore till 1600 hrs. The number of bids at cut off price was 2.5 crore. According to data on bourses, the issue is subscribed fully.
The shares are being offered at a price band of Rs 85-90 apiece. The issue is open till December 5 for institutional buyers and for retail investors it will close a day later on December 6.
Power Grid shares closed at Rs 95.55, up 1.92 per cent from its previous close 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.
Of the 78.70 crore shares offered for sale, the total number of bids received was 78.61 crore till 1600 hrs. The number of bids at cut off price was 2.5 crore. According to data on bourses, the issue is subscribed fully.
The shares are being offered at a price band of Rs 85-90 apiece. The issue is open till December 5 for institutional buyers and for retail investors it will close a day later on December 6.
Power Grid shares closed at Rs 95.55, up 1.92 per cent from its previous close 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 Cabinet last month cleared the FPO 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, while the company is
issuing fresh 60.18 crore shares through the offer. About 2.4 per cent of fresh
shares is reserved for 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.
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 Power Grid, 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.
This is the second follow-on offering from Power Grid, 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 the current fiscal.
Source- Economic Times
Shah Mohammad Abdul Qadir
PGDM 1st
Sem
IIMT College
Of Management
Greater Noida
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