State-run Power Grid Corporation's Rs 7,600-crore follow-on public offer (FPO) got a smart response from investors with a subscription of 3.61 times till 1700 hours on the second day today.
The transmission firm's FPO attracted bids for for 304 crore shares against 84.17 crore shares on offer on the second day, as per the data available on the National Stock Exchange website till 1700 hours on the second day.
Analysts said investors have shown interest in parking their funds in Power Grid's share sale programme.
The government is divesting 10 per cent of its 86.36 per cent stake and the company would raise equal percentage of fresh equity through the offer priced at Rs 85-90 per share.
At the upper end of the price range, Power Grid's FPO is worth nearly Rs 7,600 crore and at the lower end, it would fetch about Rs 7,155 crore.
The FPO will closes on November 11 for institutional investors, while for other investors bidding will close on November 12.
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Power Grid's FPO is part of the government's plan to raise Rs 40,000 crore in the current financial year through divesting stake in various PSUs.
The capital raised from the FPO will be used for part funding the PSU's Rs 55,000 crore capex plan, with Rs 30,900 crore worth of investment lined up over the next two years.
SBI Capital Markets, Goldman Sachs (India) Securities, ICICI Securities and JP Morgan India are the book running lead managers to the issue.