Power Grid share sale subscribed 6.73 times

The share sale offer of Power Grid Corporation was subscribed 6.73 times on the final day of offer on Friday as institutional and retail buyers queued up to bid for shares in the state-run transmission utility.

The follow-on-public offer (FPO) which remained open for 4 days, saw bids coming in for nearly 530 crore shares, against 78.70 crore on offer, or 6.73 times.

Retail investors, who would be alloted shares at a discount of Rs 4.50 apiece over the issue price, came in on the final day of the offer. The portion of shares reserved for retail buyers were fully subscribed, sources said.

The shares are being offered at a price band of Rs 85-90 apiece. The number of bids at cut off price was over 56.52 crore, as per data available on bourses.

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.

As per the stock exchange data, the qualified institutional buyers bid for 9.09 times the shares reserved for them. the non-institutional buyers, which include corporates, subscribed to only 12 per cent of shares. The Cabinet last month cleared the FPO which comprises 13 per cent fresh equity by the company and 4 per cent stake sale by the central government.