Power Grid Corp FPO subscribed 69% on day one

Gets bids for 54.32 crore shares

The follow-on public offer (FPO) of state-run Power Grid Corporation of India (PGCIL) was subscribed 69% on day one of the bidding for the FPO on Tuesday, 3 December 2013. The FPO received bids for 54.32 crore shares on the first day, compared with 78.70 crore shares on offer, as per NSE data.

The FPO closes on Thursday, 5 December 2013, for institutional investors and on Friday, 6 December 2013, for retail investors and employees of the company. The price band for the FPO has been 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.

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, 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 Sep 30, 2013.

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