Power Grid Corp FPO subscribed 6.66 times

Gets bids for 524.12 crore shares

The follow-on public offer (FPO) of state-run Power Grid Corporation of India (PGCIL) was subscribed 6.66 times till 17:00 IST on the last day of the bidding for the FPO today, 6 December 2013. The FPO received bids for a total 524.12 crore shares till 17:00 IST today, 6 December 2013, compared with 78.70 crore shares on offer, as per NSE data.

The portion reserved for institutional investors i.e. Qualified Institutional Buyers (QIBs) was subscribed 9.09 times. Thursday, 5 December 2013, was the last day of bidding for the FPO by institutional investors. Category wise subscription data showed that foreign institutional investors (FIIs) put in bids for a total of 186.93 crore shares, compared with 39.20 crore shares reserved for the QIB category as a whole. Domestic financial institutions, which includes banks, financial institutions and insurance companies put in bids for a total of 144.04 crore shares. Mutual funds put in bids for a total of 10.83 crore shares.

The price band for the FPO was set at Rs 85 to Rs 90 per share. 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 PGCIL FPO was a combination of fresh issue of 60.18 crore shares by the company 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, a navaratna public sector undertaking under the ministry of power, is the country's central transmission utility (CTU). The company owns and operates more than 90% of India's inter-state and interregional electric power transmission systems (ISTS). As principal electric power-transmission company of the country, it owns and operates 102109 circuit kilometers of electrical transmission lines and 172 electrical substations with a total transformation capacity of 172378 MVA as end of 30 September 2013.

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