FPO of Power Grid : Keynote

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FPO of Power Grid Corporation of  India Ltd.

Issue Highlights

Price Band                                           :  Rs 85 - 90 per share

Minimum Bid Lot Size                         : 65 Equity Share

FPO open during                                 : November 09-12, 2010

Book Running Lead Manager               : SBI Capital Markets, Goldman Sachs (India) Securities, ICICI Securities and J.P. Morgan India

To list on                                             : NSE & BSE

PE                                                       : 17.53x (based on base price)*

                                                            : 18.56x (based on cap price)*

Market Cap post-listing                        : Rs41667Cr or $9424.91mn (based on the cap price)

Market Cap of Free Float                      : Rs12741.31Cr or $2882mn (based on the cap price)

* based on FY10 EPS.

FPO of 841.77mn equity shares of Rs10 each, aggregating to Rs7575.91Cr or $1713.62mn (at the cap price) consisting of a fresh issue of 420.88mn shares aggregating to Rs3787.95Cr (at the cap price) and an offer for sale of up to 420.88mn shares aggregating to Rs3787.95Cr (at the cap price) by the Government of India.

Executive Summery

·         Power Grid Corporation of India Ltd. is India’s principal electric power transmission company. The company owns and operates more than 95% of India’s inter-state and inter-regional electric power transmission system. As at September 30, 2010, Power Grid owned and operated 79,556ckm of electrical transmission  lines and 132 electrical substations.

·         Government of India had allotted Navratna status to Power Grid in May 2008. The said status provides greater autonomy to the company undertake new projects without Govt. of India approval and allows it to make investments in subsidiaries and joint ventures.

·         Power Grid also provides consultancy services in the transmission and distribution network, including in grid management and capacity building and in the telecom services to over 115 clients in over 330 domestic and international projects.

·         The company has diversified itself into the telecommunications infrastructure business, utilizing its nationwide transmission system to create an overhead fiber–optic telecommunication cable network using optical ground wire on its power transmission lines.

·          Power Grid has maintained an average availability of over 99% for its transmission system and has not had a major grid disturbance, meaning an interruption affecting an entire region or an inter-regional transmission system.

·         The company has extensive experience and expertise in implementing new transmission projects and expanding India’s transmission systems.