Review By Dilip Davda on November 29, 2013
After its maiden IPO in October 2007, Power Grid Corporation of India Ltd. (PGCIL) is now entering with FPO. As per latest information, the FPO’s price band is fixed at Rs. 85-90 per share having a face value of Rs. 10 each. . The issue is opening on 03.12.13 and will close on 06.12.13. The purpose of the issue is to generate funds for transmission project and dilution of GoI stake. The total number of shares on offer are 78.70 crore including GoI’s stake sale of 18.51 crore share. Of the fresh shares, about 2.4 per cent will be reserved for the employees. This is the second follow-on offering from PGCIL that sold 10 per cent stake along with a similar stake divested by the government in November 2010 at an issue price of Rs 90 a share.
The issue is lead managed by SBI Capital Markets, Kotak Securities, Citigroup, ICICI Securities and UBS who are advising PGCIL on its FPO for 17 per cent stake sale, comprising 4 per cent stake dilution by Government and 13 per cent fresh equity by the company. 50 percent of the net issue is allocated to qualified institutional buyers (QIBs), 35 per cent for retail category and 15 per cent for high networth investors. In addition, 0.38 per cent of the issue is reserved for employees. Retail category and employees shall be given a discount of 5 per cent on the issue price. A discount of Rs 4.50 (which is 5 per cent of the top end of the price band) will be available to retail investors and eligible employees on the issue price on allotment. After the stake sale, the Government’s holding in PowerGrid will come down to 57.89 per cent from the current 69.42 per cent. Karvy Computershare is the registrar to the issue. Post allotment, the shares will be listed on BSE and NSE.
On secondary market front the PGCIL counter closed at Rs 95.05 on Friday on the Bombay Stock Exchange.
A good long term bet for all class of investors.
Review By Dilip Davda on November 29, 2013
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Power Grid Corp.of India Ltd. offers an early investment opportunity in Power Grid Corp.of India Ltd.. A stock market investor can buy PGCIL FPO shares by applying in IPO before Power Grid Corp.of India Ltd. shares get listed at the stock exchanges. An investor could invest in PGCIL FPO for short term listing gain or a long term.
Read the PGCIL FPO recommendations by the leading analyst and leading stock brokers.
PGCIL FPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the PGCIL FPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is PGCIL FPO?"
Our recommendation for PGCIL FPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the PGCIL FPO.
The PGCIL FPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit PGCIL FPO allotment status to check.
