Power Grid share offer subscribed six-fold

New Delhi, Dec 6 IANS) The share sale offer of state-run Power Grid Corp (PGCIL) was subscribed 6.73 times as institutional and retail buyers bid for its shares on the final day of offer Friday.

PGCIL's follow-on-public offer (FPO) saw bids for nearly 530 crore shares over four days, against 78.70 crore on offer.

The shares are being offered at a price band of Rs.85-90 apiece. Retail investors would be allotted shares at a discount of Rs 4.50 apiece over the issue price.

The number of bids at cut off price was over Rs.56.52 crore, as per data available.

According to stock exchange data, qualified institutional buyers bid for 9.09 times the shares reserved for them.

Non-institutional buyers, including corporates, subscribed to 12 percent of shares.

The FPO was cleared by the union cabinet in November. It comprises 13 percent fresh equity by Power Grid and four percent stake sale by the government. Through it, the government is selling 18.51 crore shares, while the company is issuing 60.18 crore fresh shares. Around 2.4 percent fresh shares are reserved for employees.

Post-issue, the government holding in PGCIL will come down to 57.89 percent from the current 69.42 percent.

Company shares closed at Rs.98.90, up 2.86 percent from its previous close on the Bombay Stock Exchange (BSE).