Power Grid IPO fully subscribed
10 Sep 2007
India''s biggest power transmission company Power Grid Corporation has already received applications for all the shares it has offered in a sale to help fund the expansion of its network, on the very first day of the issue.
The state-run Power Grid expects to raise Rs 298 crore ($732 million) selling 573.9 million shares. This would lower the government''s stake in the company to 86.36 per cent. The stock is being offered at between Rs44 and Rs52, and the response suggests the company may be able to make the top end of the price band.
India
plans to increase generation capacity by 60 per cent and transmission ability
almost three-fold in the next five years. The Power Finance Corporation IPO was
oversubscribed more than 77 times, and surged 38 per cent on its trading debut
in February.
