PGCIL gains on strong demand for FPO

Power Grid Corporation of India advanced 2.44% to Rs 98.50 at 09:43 IST on BSE on strong demand from investors for the company's ongoing follow on public offer.

Meanwhile, the S&P BSE Sensex was up 76.10 points or 0.36% at 21,033.91

On BSE, 2.71 lakh shares were traded in the counter as against average daily volume of 2.28 lakh shares in the past one quarter.

The stock hit a high of Rs 98.60 and a low of Rs 96 so far during the day. The stock hit a 52-week high of Rs 121.05 on 5 December 2012. The stock hit a 52-week low of Rs 86.70 on 2 August 2013.

The stock had outperformed the market over the past one month till 5 December 2013, rising 0.84% compared with the Sensex's 0.08% fall. The scrip, however, underperformed the market in past one quarter, falling 0.21% as against Sensex's 10.42% rise.

The large-cap company has equity capital of Rs 4629.73 crore. Face value per share is Rs 10.

The follow-on public offer (FPO) of state-run Power Grid Corporation of India (PGCIL) was subscribed 4.77 times by the end of the third day of the bidding for the FPO on Thursday, 5 December 2013. The FPO received bids for a total 375.73 crore shares by the end of the third day of the bidding for the issue, compared with 78.70 crore shares on offer, as per NSE data.

Bidding for the FPO by institutional investors closed on Thursday, 5 December 2013. The FPO closes today, 6 December 2013, for retail investors and employees of the company.

Categorywise, qualified institutional buyers (QIB) portion comprising of foreign institutional investors (FIIs), domestic financial institutions including banks/ financial institutions/ insurance companies), mutual funds and others was subscribed 9.09 times by Thursday, 5 December 2013. Bids were received for 356.23 crore shares as compared to 39.20 crore shares reserved for the category.

Non institutional investors category comprising of corporates, individual other than retail investors and others was subscribed 0.12 times by Thursday, 5 December 2013. Bids were received for 1.43 crore shares as compared to 11.76 crore shares reserved for the category.

Retail individual investors (RIIs) category was subscribed 0.65 times by Thursday, 5 December 2013. Bids were received for 17.92 crore shares as compared to 27.44 crore shares reserved for the category.

PGCIL is offering shares in the price band of Rs 85 to Rs 90 per share in the FPO. A discount of Rs 4.50 per share on the final issue price discovered through the book-building route will be available to retail investors and eligible employees of the company. The price band was approved by the company's board of directors at its meeting held on Friday, 29 November 2013.

PGCIL is issuing a total of 78.70 crore shares through the FPO, which includes 60.18 crore fresh equity shares and disinvestment by the Government of India (GoI) of 18.51 crore equity shares held by the President of India, acting through the Ministry of Power. After the successful divestment, GoI's holding in PGCIL will come down to 57.89% from the present level of 69.42%.

PGCIL's net profit rose 10.1% to Rs 1239.20 crore on 29% growth in net sales to Rs 3981.64 crore in Q2 September 2013 over Q2 September 2012.

PGCIL was incorporated in 1989 for transmission of electric power across the country.

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