PowerGrid FPO oversubscribed 9.7 times on penultimate day

The follow-on public offer (FPO) of India's biggest inter-state transmission company, PowerGrid Corp of India, has received overwhelming response from qualified institutional buyers (QIBs).

The issue, expected to raise $1.7 billion (Rs7,526 crore), has been subscribed 9.72 times so far, stock exchange data showed.

The portion reserved for QIBs, which closed today, was subscribed 18.52 times. The issue has received bids for 8,184 million equity shares as against an issue size of 84,17,68,246 shares. The price band is set at Rs85-90 per share.

The non-institutional investors and retail investors' portion was subscribed 1.63 times and 0.72 times respectively. The share sale, which opened on Tuesday, closes on Friday for individual investors. The offer had been fully covered on its first day.

Retail investors and employees will get equity shares at 5 per cent discount on the final issue price. Bids can be made for a minimum of 65 equity shares and in multiples of 65 shares thereafter.

The issue comprises a fresh issue of 42,08,84,123 shares and an offer for sale of 42,08,84,123 shares - officially by the President of India, acting through the ministry of power. This amounts to a 20 per cent dilution in total.