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PowerGrid FPO: New shares to start trading from Nov 26

This article was posted on Nov 21, 2010 and is filed under Press Releases

NEW DELHI: State-owned PowerGrid Corporation today said new shares allotted to the public under its recent 20 per cent follow-on public offer will start trading on the bourses from November 26.

The company’s new shares will start trading on the exchanges from November 26, PowerGrid Chairman and Managing Director S K Chaturvedi told reporters here.

The government divested 10 per cent of its 86.36 per cent stake in PowerGrid Corporation through the follow-on public offer, while the company offered an equal percentage of fresh equity.

The government raked in about Rs 7,575 crore from PowerGrid’s share sale programme.

The funds raised from the FPO will be used for part-funding the PSU’s Rs 55,000 crore capex plan, which envisages investment worth Rs 30,900 crore over the next two years.

The company had fixed the issue price of shares under the offer at Rs 90 apiece, the higher end of the IPO price band of Rs 85-90. However, retail investors and employees will be given equity stocks at a 5 per cent discount on the issue price.

The FPO received a huge response from investors and was oversubscribed 14.83 times, garnering total demand for 1,248.48 crore shares, as against 84.17 crore shares on offer, according to data available on the National Stock Exchange’s website.

SBI Capital Markets Ltd, Goldman Sachs (India) Securities Pvt Ltd, ICICI Securities and JP Morgan India Pvt Ltd are the book running lead managers to the issue.

The mega offer has given a boost to the government’s disinvestment programme, which aims to garner Rs 40,000 crore this fiscal.

PowerGrid’s public offer will be followed by stake sales by Hindustan Copper, Manganese Ore India Ltd and SAIL, among other PSUs, this fiscal.

source: EconomicTimes

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