Monday, 8 November 2010

Power Grid Corporation of India Ltd. Issues FPO (follow on public offering)

Power Grid Corporation of India Ltd. Issues FPO of 841,768,246 no. of equity shares with a face value of Rs.10 each at a price to be discovered through book building process with a price band of Rs.85 to Rs.90 per equity share. Bid opens of 09th November, 2010 and closing date for QIB bidders is 11th November, 2010 and for all other bidders 12th November, 2010.

The Managers of this FPO are SBI Capital Markets Ltd, Goldman Sachs (India) Securities Pvt. Ltd, ICICI Securities Ltd and J.P.Morgan India Pvt. Ltd.

FPO or Follow on Public Offering means an already listed company issues a fresh issue of securities to public or an offer for sale to the public. Here the shares of Power Grid Corporation are already listed with stock exchanges.

For retail investors and Power Grid’s own employees, there is a discount of 5% to the final price on offer and the minimum bid in a lot of 65 shares.

You can apply through the recently introduced ASBA (application supported by blocked amount) process also. Under this process, the bid amount is blocked in your account at the time of bidding.  When the allotment is made against your application, the money will be taken from your account only up to the extent of allotment made. So there is no refund is required. This is a facility extended by some self certified syndicate bankers (SCSBs) who have registered as such with SEBI. If you are the client of any of such banks and you wish to apply, we strongly advise you to consider making an application under the ASBA process.

We can hope that this FPO also will be a victory as the recent Coal India Ltd IPO

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