PowerGrid FPO oversubscribed 10.67 times

State-run PowerGrid Corporation's follow-on public offer (FPO) was oversubscribed 10.67 times till 1 pm on the final day of the issue on Friday, generating demand worth a whopping Rs 81,092 crore.

The FPO, through which the government is looking to garner Rs 7,600 crore, has received bids for 898.4 crore shares, against 84.17 crore shares on offer, according to the data available with the National Stock Exchange.

The FPO for qualified institutional investors closed on Thursday with a subscription of 18.52, while bidding for other investors, including retail, will close on Friday.

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.

Employees and retail investors will be given equity stocks at 5 per cent discount on the final issue price.

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.

PowerGrid'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.