PowerGrid FPO oversubscribed nearly 10 times

Power Grid Corp of India's follow-on-offer to raise as much $ 1.7 billion was nearly subscribed by 10 times on Thursday, the last day of orders for institutional investors, as investors found compelling reasons to participate in India’s power story.

The offer attracted bids worth $ 9.3 billion from foreign investors, exchange data showed, powered by record fund inflows into Indian shares this year.

Institutions subscribed for 18.5 times the shares on offer to them, while the non- institutional and retail portions of the deal were subscribed 1.6 times and 0.7 times, respectively.

Most bids came at the top-end of the 85-90 rupees price range, data showed.

The world's third- largest power transmission company operates 95 % of India's interstate network, carrying half of all power generated in the country. The Power Grid sale comes after a highly successful $3.4 billion IPO of staterun Coal India. Shares of Power Grid ended 0.78 % down at Rs 101.20.