Power grid to raise Rs 7,000 crore through follow-on public offer

Chennai::

The follow-on-public offer (FPO) for 17 percent stake sale in Power Grid Corporation of India ( PGCIL ) will hit markets on December 3 and is expected to fetch around Rs 7,000 crore.

Addressing a press conference here, Power Grid director (projects) I S Jha said that the country’s central transmission utility, is proposing a further public offer of 7.87 crore equity shares of face value of Rs 10 each.  

These include 13 per cent fresh issues and four per cent disinvestments. The Offer will close on Thursday for Qualified Institutional Buyer and on Friday for all other bidders.

The Offer comprises a fresh issue of 601,864,295 equity shares by the Company and an offer for sale of 185,189,014 equity shares by the President of India, acting through the Ministry of Power. The Offer comprises a net offer to the public of 784,053,309 equity shares and a reservation of 3,000,000 equity shares for subscription by eligible employees. The Offer would constitute 15.04 per cent of the post offer paid-up equity capital of the Company and the Net Offer would constitute 14.99pc of the post offer paid-up equity capital of the Company.

The Price Band has been fixed between Rs 85 and Rs 90 per equity share. The minimum bid lot has been fixed at 150 Equity Shares and in multiples of 150 Equity Shares thereafter. A discount of Rs 4.50 on the Offer Price is being offered to the Retail Individual Investors and the Eligible Employees bidding in the Employee Reservation Portion.