Power Grid Corp prices FPO at Rs 90 per share

At the top end of the Rs 85-90 per share price band

State-run Power Grid Corporation of India (PGCIL) has priced its recently concluded follow-on public offer (FPO) at Rs 90 per share, the top end of the Rs 85-90 per share price band. A discount of Rs 4.50 per share has been allowed to retail investors and eligible employees on the issue price, PGCIL said on Tuesday, 10 December 2013.

The FPO which was completed last week had received strong response from investors. The FPO was subscribed 6.74 times. The portion reserved for institutional investors i.e. Qualified Institutional Buyers (QIBs) was subscribed 9.09 times. 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.

The portion reserved for retail individual investors was subscribed 2.17 times. The portion reserved for non-institutional investors was subscribed 9.7 times.

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 has dropped to 57.89% from earlier 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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