Power Grid IPO subscribed over 21 times

12 September 2007

Mumbai: The initial public offer (IPO) of Powergrid Corporation of India Ltd, the country''s biggest transmission utility, was subscribed over 21 times by noon on its last day of issue.

PGCIL entered the capital market with an IPO of 573,932,895 equity shares of Rs10 each for cash at a price band of between Rs44 and Rs52 a share. The issue received bids for 12,401.4 million equity shares against the 573.9 million shares on offer, data available with the stock exchanges show.

The company would raise up to Rs3,000 crore through its issue. The IPO received robust response in the qualified institutional buyers'' category especially from the foreign institutional investors (FIIs).

PGCIL is India''s largest power transmission company and in charge of developing the crucial national grid comprising of 37,150 MW transmission capacity by 2012 from the existing 14,100 MW.

PGCIL transmitted around 45 per cent of the total power generated in the country in FY2007 with ownership of electrical transmission lines covering 61,875 circuit km and 106 substations.

The proceeds of the issue would be used to part finance 15 projects involving a total investment of Rs12,280 crore. The completion of the 15 projects would enhance PGCIL''s transmission system by 13,022 circuit km.