Government disinvest Power Grid Corp further with $1.1 billion FPO
Following its plan to achieve the Rs.40, 000 crore disinvestment target for this fiscal, the government issued Follow-on-Public Offer (FPO) of Power Grid Corporation which was fully subscribed.
The sale of 78.70 crore shares valuing $ 1.1 billion, or 17% stake, could fetch around Rs 7,083 crore at the upper end of the price band. .
With this offer, the government holding in the company will come down to 57.89% from the current level of 69.42%.
This is the second FPO from Power Grid, which sold a 10% stake along with a similar stake divested by the government in November 2010. The company hit the capital market with IPO in October 2007. So far in the current fiscal, the government has raised over Rs 1,300 crore through minority stake sale in PSUs. It has aims to fetch Rs 40,000 crore from disinvestment in the current fiscal.