Power Grid FPO Subscribed 9.72 times

For the last day of auctioning for institutional investors, Power Grid Corporation’s FPO (Follow-on Public Offer), estimated to be around Rs 7500 crore, was subscribed 9.72 times.

The market-analysts however are not impressed with power Corp’s such quantum leap, and are of opinion that it is relatively lower than the Coal India issue where the bidder subscribed 11.8 times on the closing day for institutional investors.

According to the analyst, this happens because the FPO normally is not as much optimistic for demand as IPO.

Alex Mathew, Head of Research at Geojit BNP Paribas Financial Services said that FPO’s price surge is restricted while it is hard to say how the share of IPO will move on the listing. “The demand for an FPO is usually less than for an IPO,” he said.

Institutional subscription for Power Grid’s FPO was 18.52 times. Foreign institutional auctioneers that set bids of Rs 1.1 lakh crore in the Coal India IPO bided for Rs 41,040 crore for Power Grid shares. In comparison to domestic institutions bid for 272 crore shares, foreign institutional auctioneers bid for 456 crore shares.