Power Grid Corporation hits 52-week low on equity dilution worries

Power Grid Corporation of India slumped 11.56% to Rs 91.05 at 9:38 IST on BSE on concerns of equity dilution after the company's board approved selling 15% of existing paid-up share capital through follow-on public offer.

The announcement was made after market hours on Thursday, 1 August 2013.

Meanwhile, the S&P BSE Sensex was up 29.51 points, or 0.15%, to 19,346.70.

On BSE, 1.81 lakh shares were traded in the counter as against an average daily volume of 1.94 lakh shares in the past one quarter.

The stock hit a low of Rs 90.40 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs 100.10 so far during the day. The stock had hit a 52-week high of Rs 124.45 on 5 September 2012.

The stock had underperformed the market over the past one month till 1 August 2013, sliding 8.53% compared with the Sensex's 1.33% fall. The scrip had also underperformed the market in past one quarter, falling 8.24% as against Sensex's 0.96% fall.

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

Power Grid Corporation of India said its board has approved the follow-on public offer (FPO) of 15% of existing paid up share capital, comprising fresh issue of 69.44 crore equity shares, for augmenting resources of company to fund its investment program, subject to necessary approval of Government of India.

Power Grid Corporation of India's net profit rose 19.56% to Rs 1040.34 crore on 23% rise in net sales to Rs 3553.75 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result after market hours on Thursday, 1 August 2013.

State-run Power Grid Corporation of India was incorporated in 1989 for transmission of electric power across the country. The Government of India (GoI) holds 69.42% stake in the company (as per the shareholding pattern as on 30 June 2013).

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