Power Grid FPO subscribed 0.74 times till noon

State-run transmission firm Power Grid Corporation's follow-on public offer (FPO), which opened today, got a smart response from investors with 0.74 times subscription till 1400 hours on the first day.

As per the data available on the National Stock Exchange website, the power major's FPO received bids for 62.26 crore shares against 84.17 crore shares on offer, till 1400 hours on the first day.

The issue is open for subscription till November 12.

PowerGrid Corporation's FPO through which it intends to raise Rs 8,000 crore, is part of the government's disinvestment target of Rs 40,000 crore for the current financial year.

Through the FPO which has been priced in a range of Rs 85-90 per share, the centre would disinvest 10 per cent of its 86.36 per cent stake and the company would raise equal percentage of fresh equity.

The capital raised from the FPO will be used for part funding the PSU's Rs 55,000 crore capex plan, with Rs 30,900 crore worth of investment lined up over the next two years.

SBI Capital Markets Ltd, Goldman Sachs (India) Securities Pvt Ltd, ICICI Securities and JP Morgan India Pvt Ltd are the book running lead managers to the issue.