Abstract:
Power Grid Corporation came out with an Initial Public Offering with the aim of raising near about 2984 crores of rupees. The company decided to sell its' 559,954,895 equity shares as Net Public Issue.
Power Grid Corporation IPO refers to that Initial Public Offering of Power Grid Corporation which was scheduled to open on 10th September 2007 and close on 13th September, 2007. For this Initial Public Offering, Power Grid Corporation filed its' Draft Red Herring Prospectus or DRHP with Securities and Exchange Board of India(SEBI) on 22nd August,2007. Through this Initial Public Offering, the company aimed at raising capital worth 2984 crores of rupees.
Details of the Initial Public Offering
The company decided to sell its' 573,932,895 equity shares through this Initial Public Offering. Out of the total equity shares, 13,978,000 shares were reserved by the company for its' own employees. Power Grid Corporation declared that it would sell 559,954,895 shares as Net Public Issue.
The company fixed the Price Band of its' shares as 44 rupees to 52 rupees per share. It was decided that the company would sell its' equity share at a price level, which would be determined through the book building process. Power Grid Corporation appointed Citigroup Global Markets India Limited, Kotak Mahindra Capital Company Limited and Enam Securities Private Limited as the BRLMs or Book Running Lead Managers for this IPO Deal.
The shares of the Power Grid Corporation were proposed to be listed on the NSE(National Stock Exchange) and BSE(Bombay Stock Exchange). It can be mentioned here, that the symbol of Power Grid Corporation Shares in the Stock Exchanges is POWERGRID.
Reasons behind the IPO
The Power Grid Corporation, which is the National Transmission Agency of India was involved in development of some new projects which required a total investment of almost 12,700 crores of rupees. So, the Power Grid Corporation came out with this Initial Public Offering and decided to finance the new projects partly using the capital raised through the IPO.