India's biggest inter-state transmission firm Power Grid Corp's follow-on public offer (FPO), which closed today, has received tremendous response from investors.Power Grid Corporation of India has set the issue price for its follow-on public offer at Rs 90 a share. This is at the upper end of the price band that it had announced earlier.
Retail investors and employees of the company will get a 5 per cent discount on the offer price.State-run Power Grid’s follow-on public offering (FPO) was subscribed about 15 times at the end of the last day as retail and wealthy investors lapped up the issue on attractive pricing.
The issue’s retail and non-institutional investor categories were subscribed 3.85 times and about 29 times, respectively. The issue got a good response from the company’™s employees, with their portion getting fully subscribed.
Retail investors and employees will get equity shares at 5% discount to the final issue price. The issue comprises a fresh issue of 42,08,84,123 shares and an offer for sale of 42,08,84,123 shares by the President of India acting through the Ministry of Power, Government of India, which is 20% offer in total.
The company has a current capacity of 75,000 circuit kms and plans to add 8,000 circuit kms in FY11. Power Grid Corp has earmarked capital expenditure of USD 27 billion for 2012-2017, more than double its capex budget in its current five-year plan.The FPO proceeds will be used for 13 transmission projects costing Rs 22,600 crore.