Powergrid Corporation forthcoming public issue offer price band has got fixed at Rs.85 to Rs.90 which is lower than its 52 week lowest price of Rs.95.05. Also a five per cent discount for retails investors and employees on the price that will be fixed.
Stock closed at Rs.102 on last Friday the last company expects to raise up to $1.9 billion and will hit the markets tomorrow on November 9 and closes on November 12.
Powergrid FPO coming in a few days after the big success Rs.15000 crore ($3 billion ) Coal India IPO. Experts are saying that many of the CIL subscribers who have got their refunds will invest in the Powegrid FPO.
The powergrid FPO will be followed by another public sector company Manganese Ore India. The government will disinvest 10 per cent while the governments of Maharashtra and Madhya Pradesh will offload five per cent each.
The proceeds of the FPO will be used to finance the company’s 13 identified transmission projects.
They include strengthening of their existing transmission lines or grids and projects for establishing new transmission lines connecting new generating plants. The transmission projects are transmission projects are expected to enhance the length of their present transmission system by 18,711 circuit km.