Power Grid FPO IPO: Review Analysis & Details of Power Grid FPO IPO

There is a follow on Public offer or FPO of another government owned healthy company called Power Grid India. As reported earlier, the Coal India IPO was a huge success, a few days back. And now this new FPO from Government of India has hit the markets today.
In this article, we will look at the Review, Analysis and Details of the Power Grid FPO and try to do the Review and analysis of Power Grid Shipping FPO.

Power Grid Shipping FPO: Review Analysis & Details

Some basic details first about the Power Grid FPO, which are available as of now:

- The size of Power Grid IPO is expected to be between around 8000 Crore Rupees
- Yesterday's closing price of existing Power Grid shares on BSE was Rs. 98, which was lower that the offered FPO price band. However, investors should note that the exisitng shares prices get affected by the FPO prices and that is the effect we are seeing currently.

What is the issue size of the Power Grid IPO?
Around 8000 Crore Rupees is the size of the FPO.
What is the price band of Power Grid IPO?
It is reported that the recommended price band for Power Grid IPO is Rs 85-90 per share. Final price to be decided through 100% book building process.

How many shares will be sold in the Power Grid IPO?
The total no. of shares to be sold through this IPO is a total of 84.2 crore shares. Of this, 50% will be freshly issued shares while rest 50% will be divested by the government. Hence, the government will get 50% of the total capital collected through this FPO.

What is the trading symbol & exchange for the Power Grid IPO
No info about that

What are the IPO dates for Power Grid IPO
The Power Grid FPO dates are from Nov 9, 2010 to Nov 12, 2010

Any ratings given to Power Grid IPO?
No information about that.

What are the analysts recommendations and business results for Power Grid IPO?
First the good news for retails investors - retail investors will get a 5% discount on this FPR since it is a government owned company. The same discount applies for Power Grid Employees as well.
However, the retail investors cannot bid with the 2 Lakh upper limit, it is still at 1 Lakh limit. Applications can be made in multiples of 65 shares.

The company has current capacity of 75,000 circuit kms and plans to add 8,000 circuit kms in FY11
How will the FPO money be used? There are 13 different transmission projects costing Rs 22,600 crore which is where this money from FPO will be used.
SBI Capital Markets Ltd, Goldman Sachs (India) Securities Pvt Ltd, ICICI Securities and JP Morgan India Pvt Ltd are the book running lead managers to this FPO issue