Power Grid Corporation of India (PGCIL)
slumped near 12 per cent on the bourses on Friday as the company firms up plans to sell stake.
The PSU on Thursday reported a nearly 20 per cent jump in net profit to Rs 1,040.34 crore in the first quarter of the current financial year and announced that it plans to sell 15 per cent stake in the company.
Looking to raise funds for its investment plans, the company's board approved the stake sale through Follow on Public Offer (FPO).
"The Board of Directors of the company at its meeting held on August 01, 2013, have approved the FPO of 15 per cent of existing paid up share capital comprising fresh issue of 69,44,58,802 equity shares," the company had said on Thursday in a filing to the Bombay Stock Exchange.
Reacting to the news, shares of the company started the day on a weak note, tanking 15.59 per cent before settling the day down 11.56 per cent at Rs 91.05 on BSE.
On the National Stock Exchange, shares of the PSU shed 11.18 per cent to Rs 91.35.
"OFS buzz may have pulled down the stock," said Kishor Ostwal, CMD, CNI Research. At Thursday's closing price of Rs 102.95 per scrip, the proposed FPO would fetch more than Rs 7,100 crore.
According to Power Grid, the proceeds would be utilised for augmenting resources to fund its investment programme. The proposal would be subject to necessary approval of the government.
With inputs from PTIDisclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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