With the myriad success of Coal India IPO, the government is ready to launch the divestment of the largest inter-state run Power transmission firm (Power Grid Corporation of India Ltd).The bidding closes on Friday while the FPO is already subscribed 1.08 % (Source NSE) at a discount of 15% to market price.
In recent times, FPO’s have become a popular method for companies to raise additional equity capital in the market through stock issue.Public companies are taking good advantage of an FPO, issuing an offer for sale to investors, which are made through an offer document by offering supplementary issues made after a company has been established on an exchange.
Post the Power grid offering, the government is expected to launch six more offers for divestment during the current financial year, which include the IPO for MOIL, the manganese ore producer, and follow-on offerings for Hindustan Copper, Shipping Corporation of India , ONGC , SAIL and Indian Oil.
Source: ET/FT
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