Comments
The follow-on public offer for 17 per cent stake sale in Power Grid Corporation of India (PGCIL), which is expected to garner Rs 7,083 crore, opened today.
The shares are being offered at a price band of Rs 85-90 apiece and the issue would remain open till December 5 for institutional buyers and December 6 for retail investors. The FPO would remain open between 10am and 5pm.
In the first hour of trading, only 15,750 shares were bid for in the retail investor category of the over 27.44 crore reserved for them, as per data available on the NSE.
Shares of PGCIL were trading at Rs 93.70, up 0.32 per cent in the late morning trade on the BSE.
The sale of 78.70 crore shares or 17 per cent stake could fetch around Rs 7,083 crore at the upper end of the price band.
The company may garner close to Rs 5,717 crore, while the government may receive around Rs 1,758 crore.
Last month the Cabinet had cleared the FPO of PGCIL, which will comprise 13 per cent fresh equity by the company and 4 per cent stake sale by the central government.
The Government is selling 18.51 crore shares in PGCIL, while the company is issuing fresh 60.18 crore shares through the offer. Of the fresh shares, about 2.4 per cent will be reserved for the employees.
As much as 50 per cent of the net issue is allocated to Qualified Institutional Buyers (QIBs), 35 per cent for retail category and 15 per cent for High Network Investors (HNI).
Above 0.38 per cent of the issue is reserved for employees.
Retail category and employees shall be given a discount of 5 per cent on the issue price.
The government holding in the company will come down to 57.89 per cent from the present level of 69.42 per cent.
Citigroup, ICICI Securities, UBS, SBI Caps and Kotak Mahindra have been appointed as merchant bankers for the FPO.
This will be the second follow-on offering from PGCIL, which sold a 10 per cent stake along with a similar stake divested by the government in November 2010 at an issue price of Rs 90 a share.
The company hit the capital market with initial public offering in October 2007.
So far in the current fiscal, the Government has raised over Rs 1,300 crore through minority stake sale in PSUs.
It has set a target of Rs 40,000 crore from disinvestment in current fiscal.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.