From 26th November, State-owned PowerGrid Corporation on Thursday asserted that, the new shares allotted to the public under its recent 20 per cent follow-on public will start trading on the bourses.

S K Chaturvedi, Power Grid Chairman and Managing Director told reporters in New Delhi, that the company’s new shares will start trading on the exchange from 26th November. The company has ffered an equal percentage of fresh equity, and the government divested 10 per cent of its 86.36 per cent in Power Grid Corporation through the follow-on public offer.

From PowerGrid share sale programme, the government raked in about Rs. 7,575 crore. Over the next coming two years, the funds raised from the FPO will be used for part-funding of the PSU’s Rs 55,000 crore capex plan, as this is going to envisage an investment worth of Rs 30,900 crore. The higher end of the IPO price band of Rs. 85-90, the company had fixed the issue price of shares under an offer at Rs 90 apiece.

However, on the issue price, retail investors and employee will be given equity stocks at a 5 percent discount. According to the data available on the National Stock Exchange’s website, the FPO received a huge response from investors and was oversubscribed to 14.83 times, with a gaming total demand for 1,248.48 crore shares, as against 84.17 crore shares on offer. The book running lead managers to the issue are JP Morgan India Pvt. Ltd., ICICI Securities, Goldman Sachs (India) Securities Pvt. Ltd and SBI Capital Market Ltd.