Power Grid FPO oversubscribed 1.08 times on Day 1

Riding on strong retail and institutional demand, the Rs 7,600-crore Power Grid Corporation's follow-on public offer (FPO) was oversubscribed 1.08 times on the first day today.

The state-run transmission firm's FPO attracted bids for for 90.53 crore shares against 84.17 crore shares on offer on the first day, as per the data available on the National Stock Exchange website.

While QIB portion was subscribed 2.09 times, the retail category was subscribed 0.06 times.

The government is divesting 10 per cent of its 86.36 per cent stake and the company would raise equal percentage of fresh equity through the offer priced at Rs 85-90 per share.

At the upper end of the price range, Power Grid's FPO is worth nearly Rs 7,600 crore and at the lower end, it would fetch about Rs 7,155 crore.

The FPO closes on November 11 for institutional investors, while for other investors bidding will close on November 12.

Power Grid's FPO is part of the government's plan to raise Rs 40,000 crore in the current financial year through divesting stake in various PSUs.

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