State-owned Power Grid Corporation to raise up to INR7,600 crore in FPO
The Indian primary market may be set for a revival with state-owned Power Grid Corporation's follow-on public offer (FPO), Economic Times said in a report. According to the report, Power Grid has generated demand for over six times the stock that's being sold. Although some analysts are on view that this success was on account of attractive pricing rather than trend reversal. This is the first FPO in the last two years.
Economic Times said the Indian government is looking to raise INR7,600 by selling 84.71 crore shares through the FPO. The government plans to raise INR40,000 crore in the current financial year through divesting stakes in various public sector units.
Demand for Power Grid offer that ended on Friday added up to about INR47,000 crore, with strong appetite from both foreign and domestic institutional investors, the report said.
The Indian government is divesting 10% of its 86.36% stake in the energy company and the company will raise an equal percentage of fresh equity through the offer priced at INR85 to INR90 per share. Power Grid's FPO could raise between INR7,155 crore and INR7,600 crore, Economic Times said.