Power Grid FPO priced between Rs.85-90
State-run Indiaâ€™s biggest power transmission company, Power Grid Corporation, has fixed its Follow-on Public Offer (FPO) at Rs. 85-90 per share making it attractive for the investors.
Bidding opens on November 9, 2010 and closes on November 11, 2010 for Qualified Institutional Buyers and on November 12, 2010 for retail bidders. Retail bidders will also get 5% discount along with the eligible employees of Power Grid.
Power Grid is now trading at around Rs. 100 and FPO price of Rs.85-90 seems lucrative for retail bidders as the FPO price is lower at 10% and also they get 5% discount. So, if they are selling them right after allotment, they can easily make 10%-15% for sure depending on the price it trades at that time.