The follow-on-public offer of state-run Power Grid Corp of India was fully subscribed on Wednesday,the second day of the offering. The good response to the issue boosted the rupee which recovered from early losses and gained 31 paise to close at a one-month high of 62.05 against the dollar.
For the 78.70 crore shares offered for sale,the total number of bids received was 83.34 crore at close. The number of bids at cut off price was 3.91 crore. 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 5,416 crore at the upper price band,while the government may receive around Rs 1,667 crore by diluting its stake.
The rupee traded strong against the dollar due to inflows from foreign banks,which may be partially tied to Power Grid share sale inflows,said Pramit Brahmbhatt,CEO of Alpari Financial Services (India). The issue will close on Friday.
The company has set a price band of Rs 85-90 per share for the offer,with a discount of Rs 4.5 for retail bidders and employees. The offering comprises a 4 per cent stake sale and fresh issue of 60.19 crore shares by the company to raise funds for capital expenditure on transmission projects. With PTI