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Nov 19, 2010, 11.31 AM IST | Source: Moneycontrol.com

Power Grid sets FPO price at Rs 90/share

India's biggest inter-state transmission firm Power Grid Corporation will list its equity shares, issued recently via follow-on public offer (FPO), on exchanges on Tuesday, November 23, 2010, CMD, S K Chaturvedi said. Date for the basis of allotment is yet to be decided.

Power Grid sets FPO price at Rs 90/share

India's biggest inter-state transmission firm, Power Grid Corporation , will list its equity shares, issued recently via follow-on public offer (FPO), on exchanges on November 23, 2010 informed its chairman and managing director, S K Chaturvedi in an exlusive interview to CNBC Awaaz. Power Grid will raise around USD 1.7 billion through this issue. Date for the basis of allotment is yet to be decided.

The company has fixed an issue price at Rs 90 a share, at higher end of price band of Rs 85-90. However, retail investors and employees will get shares in allotment at Rs 85.5, a 5% discount to issue price.

According to him, the response from company's employees to the issue was very energetic along with other investors. Reserved portion of employees in Power Grid FPO was subscribed 1.11 times while in Coal India, employees' portion was subscribed just 10%.

Chaturvedi believes that the company's strong planning of grid capacity expansion was the reason that investors believe in strongly while subscribing. Foreign, non-institutional and retail investors showed strong response to the issue; their portion subscribed 18.52 times, 28.86 times and 3.85 times, respectively. Overall the issue was subscribed 14.88 times.

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