Power Grid IPO subscribed 9.44 times on third day

Power Grid IPO subscribed 9.44 times on third day

Mumbai: The initial public offer of Power Grid Corporation of India Ltd (PGCIL), the country’s biggest transmission utility, got subscribed over nine times till the third day of its issue.

The issue received bids for 541.81 crore equity shares for the 57.39 crore shares on offer, data available on the stock exchanges show.

The company is expecting to raise up to Rs3,000 crore through its issue, for which the price band has been fixed between Rs44 to Rs52 a share.

The issue has received robust response in the Qualified Institutional Buyers category especially from the Foreign Institutional Investors (FIIs).

The portion reserved for FIIs had been subscribed over four times on 11 September, while the retail and non-institutional investors segment had remained undersubscribed.

The proceeds would be used to part finance 15 projects that entail a total investment of Rs12,280 crore. PGCIL owns and operates 61,875 circuit kms of transmission lines. The proposed 15 projects would enhance its transmission system by 13,022 circuit km.

The company currently has inter-regional electricity transfer capacity of around 14,000 MW and plans to scale it up to 37,000 MW.

PGCIL is the third central power utility to tap the capital market for raising funds after NTPC Ltd in 2004 and Power Finance Corporation early this year.

Like NTPC and PFC, the government will piggyback on PGCIL IPO to divest five per cent of its stake. While NTPC had raised around Rs5,400 crore, PFC had mopped up nearly Rs1,000 crore.