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Power Grid drops after FPO pricing

Photo

The sun sets behind electric pylons in Allahabad February 22, 2006. REUTERS/Jitendra Prakash/Files

Power Grid shares fell 3.6 percent to 98.35 rupees on Monday after the government set a price range for its follow-on share offer at a discount to 12-17 percent to Friday’s closing price.

Power Grid, which launches a share sale to raise up to $1.7 billion, aims to double capital spending to about $27 billion in the five years starting in April 2012 to meet booming demand for electricity.

The government has set a price range for the share sale at 85-90 rupees each. Analysts see this pricing as attractive for investors. Do you think it is the right time to invest in this stock?

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