Huge Subsripition of Power Grid

Power Grid issue charms USD 30 bn overseas subscriptions

Power Grid Corporation of India`s public issue has attracted USD 30 billion (over Rs 1,200 billion) in overseas subscriptions. The issue itself got subscribed 64 times overall. As margin money alone, the issue will bring in USD 3 billion in forex into the country, reports Business Line.

`We received subscriptions worth over Rs 1,900 billion,` said S. Subramanian, head of investment banking, Enam Securities, one of the managers to the issue. `Institutional buyers subscribed 116 times, bringing in around USD 41 billion. Three-fourths of this institutional subscription came from overseas investors.`

The retail response to the PowerGrid issue was five times, and that of high net worth individual was 40 times. It would have raised Rs 29 billion at the upper end of the price band. As many as 573.9 million shares were offered at a price band of Rs 44-52. As per data available on the NSE site, bids for 37 billion shares were received.

Domestic pension funds and provident funds were also seen to be active, perhaps for the first time in the equities market, said Subramanian. Overseas investors have also put in funds expecting a rupee appreciation, noted an investment banking official.

Reliance Petroleum had fetched around USD 25 billion in subscriptions from the institutional category (including domestic and overseas), pointed out another investment banking official.