Power Grid follow-on raises $1.7 billion

The second government share sale in a month draws strong interest from all categories of investors.

Power Grid Corporation of India priced its follow-on offering at the top end over the weekend, allowing the company and the government to raise the maximum Rs75.76 billion $1.7 billion they sought. The deal, which was the second government sell-down in a month after Coal India's IPO, ended up 14.9 times covered and, for the first time in a long time, all the tranches were oversubscribed.

Retail investors have shunned most of the share sales this year, including government follow-on offerings. However, some investors have been drawn back to the primary markets in the past month or so. On Coal India’s recent record-size IPO, for example, the retail offering was 2.1 times covered...

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