Mumbai, India — ESI-AFRICA.COM — 12 November 2010 – Power Grid Corporation of India’s US$1.7 billion (R11.7 billion) share sale was subscribed 14.5 times on its final day, underlining investor demand for attractively priced offers and building momentum for upcoming state share sales.
Power Grid is the world’s third-largest power transmission company, operating 95% of India’s interstate network, and carrying half of all power generated in the country. India aims to halve its peak-hour power deficit of nearly 14% over the next two years and triple its generation capacity over the next decade.
The share sale is part of India’s ongoing divestment programme to sell stakes in some 60 firms over the next few years, taking advantage of a boost from record foreign funds flowing into Indian stocks.
The offer followed on the heels of an enthusiastic response to a US$3.4 billion (R23.4 billion) IPO by Coal India, which listed at a 40 percent premium last week.
The institutional order book, which closed on Thursday, had been heavily oversubscribed, attracting bids worth US$9.3 billion (R64.1 billion) from foreign investors alone.
Strong investor demand means the offer is likely to be priced at the top of the range when final pricing is decided next week. The share sale, which opened Tuesday, was fully subscribed on its first day with the stock seen as a safe bet on demand growth in a power-starved nation.