Power Grid FPO subscription oversubscribed 1.08 times

The attractive pricing saw investors flock the Rs 7,600- crore follow- on offer of Power Grid Corporation as the issue was oversubscribed 1.08 times on the first day on Tuesday.

The state- run transmission firm's FPO attracted bids for 90.53 crore shares against 84.17 crore shares on offer on the first day, as per the data available on the National Stock Exchange. While QIB portion was subscribed 2.09 times, the retail category was subscribed 0.06 times.

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.

The central transmission utility major also plans to raise Rs 8,000 crore by issuing bonds in the domestic market by August, 2011, for funding its expansion plans. " We are yet to finalise... we may raise about Rs 8,000 crore next (financial) year... in the second or the third quarter," Finance Power Grid Director J Sridharan said.