Millennium Post

5 merchant bankers named for PowerGrid’s 17% FPO

'Citigroup, ICICI Securities, UBS, SBI Caps and Kotak Mahindra have been appointed as the book running lead managers for the Power Grid FPO,' a source close to the development said.

The follow-on offer, which got Cabinet nod on Thursday, will comprise 4 per cent stake sale by the central government and the company will also raise fresh equity to the tune of 13 per cent.
At current market valuations, the FPO is likely to fetch close to Rs 7,500 crore.

The company may garner close to Rs 5,700 crore, while the government will get an estimated Rs 1,700 crore.

This would be the second follow-on offer from Power Grid, which sold a 10 per cent stake along with a similar stake divested by the government in November 2010 at an issue price of Rs 90 a share. The company hit the capital market with its initial public offering in October 2007. Bullish on its expansion plans, the public sector company plans to borrow about Rs 16,000 crore during the current financial year.

It has already raised close to Rs 9,000 crore through a mix of instruments like ECB (external commercial borrowing), bonds and loans from multi-lateral funding agencies like World Bank and Asian Development Bank. Meanwhile, company's assets have jumped to a whopping Rs 85,000 crore from Rs 50,000 crore in 2011-12.
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