Power Grid FPO Approved by Government

Posted on Thursday, July 22, 2010
Filed under Indian Stock Market News, Indian Stock Market Tips, Power Grid

As investors are waiting for the news about Power Grid FPO it comes out positive. On Thursday government said that it will divest 10% of its stake in transmission utility as a part of an about Rs 8,400 crore public issue.

Price of the share of Power Grid will be around 105.50 per share.

Power Minister Sushil Kumar Shinde told reporters that Power Grid is likely to come out with its follow-on offer by October this year. Government has 86.36 % stake in Power Grid Corporation.

The offer comprises over 84 crore (84,17,68,246) equity shares of Rs 10 each, constituting 18.18 % of post-offer paid-up capital of the company.

Power Grid hit the capital market in October, 2007, with its maiden public offer, comprising issuance of 10% fresh equity and 5% disinvestment by the government.

Power Grid has targets to augment transmission capacity to 23,400 MW in the current fiscal year from 19,800 MW at present.

Power Grid stock was up 1.5% and close at Rs 101.40 on NSE on Thursday.

Is this right time to enter the stock as the stock brokers are bullish on Power Grid and the value of the company is also creates a positive state in investors mind. So, take your own desicition to put your money on this stock.

Power Grid Stock Tips:
Power Grid may touch 120 levels as it is hovering around 100 rs for last few weeks. As the government have decided the FPO it will surely boost the price soon. Investors can enter the stock around 100 Rs. and can stay invested for long term. Short term investors can buy Power Grid for the level of around 105.