The follow-on public offering (FPO) of power utility, PowerGrid Corporation, which closed on Thursday for institutional investors, has been subscribed nearly five times, sparking hopes of revival in the primary market. The offering has seen total bids worth more than Rs 30,000 crore, as against Rs 7,000 crore on offer.
The so-called qualified institutional buyers (QIB) category, which comprises of foreign institutional investors (FIIs), mutual funds and insurance companies, was subscribed 9,09 times. Bids put in by FIIs have totaled Rs 16,000 crore, while that by domestic investors bids stood at nearly Rs 13,000 crore.
The issue will close on Friday for remaining category of investors - retail, high net-worth individuals (HNIs) and company employees. So far, the retail and HNI category have been subscribed 65 per cent and 12 per cent, respectively. Investment bankers handling the issue said the bulk of applications in these two categories will come on the last day of the issue.
PowerGrid shares, traded in the secondary market, ended 0.42 per cent higher at Rs 96 on the National Stock Exchange. Shares of the company are being offered in the price band of Rs 85-90 a share - at a discount between 6.7 and 13 per cent to the current market price.
The company is offering additional five per cent discount to retail investors and its employees.
Market experts said a decent discount to the prevailing market price has led to the success of the issue. Power grid share price has remained above the secondary market price since the FPO pricing was announced last week.
