An Empowered Group of Ministers (EGoM) headed by Finance Minister P. Chidambaram has set a floor price band of Rs 85-90 a share for the follow-on public offer (FPO) of Power Grid Corporation of India.
Retail investors and employees will be given a discount of 5 per cent on the issue price.
The issue will open on December 3 and close on December 5 for institutional investors, and on December 6 for retail category and employees.
A discount of Rs 4.50 (which is 5 per cent of the top end of the price band) will be available to retail investors and eligible employees on the issue price on allotment.
Five merchant bankers — SBI Capital Markets, Kotak Securities, Citigroup, ICICI Securities and UBS — are advising PowerGrid on its FPO for 17 per cent stake sale, comprising 4 per cent stake dilution by the Government and 13 per cent fresh equity by the company.
The Power Ministry in a statement had said that 50 per cent of the net issue will be allocated to qualified institutional buyers, 35 per cent to retail investors and 15 per cent to high net worth investors. In addition, 0.38 per cent of the issue would be reserved for employees.
After the stake-sale, the Government’s holding in PowerGrid will come down to 57.89 per cent from the current 69.42 per cent.
The PowerGrid scrip closed 0.69 per cent higher at Rs 95.05 on Friday on the BSE. At the current valuations, the issue may mop up more than Rs 7,500 crore.
The firm had launched its IPO in October 2007. An FPO followed in 2010.
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