PowerGrid's FPO shares admitted on bourses; scrip hits yr-low

PowerGrid Corp slipped over three per cent to its yearly-low on BSE in the early trade, after the state-run power transmission firm's follow-on public offer was officially registered on bourses today.

The company share opened on a subdued note and plunged by 3.04 per cent to a 52-week low of Rs 94 in the morning trade on the Bombay Stock Exchange.

In a similar fashion, it tanked by 3.91 per cent to Rs 93.30 on the National Stock Exchange.

PowerGrid has raised Rs 7,600 crore through its FPO of 84.17 crore shares, which commenced trading on the bourses today.

The government has divested 10 per cent of its 86.36 per cent stake and the company has raised equal percentage of fresh equity through the offer, which was priced at Rs 90 per share.

Employees and retail investors were given equity stocks at 5 per cent discount on the final issue price, i.e. at Rs 85.50 per share.

Power Grid will use the funds raised from the FPO for part-funding capital expenditure plan. Meanwhile, the 30-share benchmark Sensex was trading at 19,593.25, up by 133.40 points from its previous close.