The government on Sunday fixed price band at Rs 85-90 per share for about Rs 7,600 crore follow-on public offer of state-run transmission company Power Grid Corporation of India.“The price band for PowerGrid has been fixed between Rs 85-90,” power minister Sushilkumar Shinde said after meeting of group of ministers.The FPO comprises over 84 crore (84,17,68,246) equity shares of Rs 10 each constituting 20% of existing paid-up capital. At the upper end of the price band, the issue will fetch up to Rs 7,600 crore. The follow-on public offer of the company hits the market on November 9. The bid closes on November 11 for institutional investors and on November 12 for retail and non-institutional bidders.The company plans to raise 10% fresh equity, while the government is likely to offload 10% of its 86.36% stake in PowerGrid. Besides disinvestment of the government stake, the fresh capital raising would be used for part funding investment requirement of about Rs 58,000 crore of the PSU.The PSU has already tied up 86% of the funds required for its capex plan and the remaining amount will be raised through the FPO and bonds issues.
The company aims to augment transmission capacity to 23,400 mw in the current fiscal from 19,800 mw at present. On the transmission side, the company had been awarded Rs 7,000 crore worth of projects. It hopes to bag projects worth Rs 14,000 crore in FY'11. The company had hit the capital market in October, 2007, with its maiden public offer. The government had divested 5% of its stake in the company at that time.
Shares of PoweGrid closed at Rs 102 apiece on the Bombay Stock Exchange on Friday last week.
This is going to be the first public offer after huge success of Coal India Ltd initial public offer that raised record Rs 15,200 crore last month. The world's largest coal producer made a stellar debut on bourses ending 43% higher at Rs 349.65 a share on the Bombay Stock Exchange as against the issue price of Rs 245 a share.
No comments:
Post a Comment