September 12, 2007

Power Grid Corporation of India Ltd.- IPO Prospects

Power Grid - IPO Prospects

Issue Period : 10th September -13th September
Face Value - Rs 10
Price -Rs 44 -Rs 52
Min .Order -125 shares

Grade - Good
Recommendation - Subscribe


Comments

Investors can subscribe to Power Grid Corporation of India Ltd.’s (PGCIL) IPO at the cut-off price. The company is a near monopoly in the inter-regional and inter-state power transmission business where earnings visibility is high and operational risks are low. PGCIL is investing in trebling inter-regional transmission capacity over the next five years and is responsible for the planning and development of the nation-wide power transmission network.

The stock is expected to list at around Rs 75 as per present market situation. If one gets below Rs 70, then accumulate it for long term.

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