Power Grid India's 2007 IPO, 64 times subscribed, funded the national grid

Power Grid Corporation of India operated most of the country's inter-state transmission assets and was the nodal agency for moving power across states, but funding the network's expansion was straining the state budget. The Eleventh Plan aimed to raise transmission capacity by roughly 1.6 times, and the government decided to open the company to equity investors.

The initial public offer opened in September 2007 with a fresh issue of 382.6 million shares plus a sale of 191.3 million shares by the federal government, diluting its holding from 100% to 86.36%. Priced in a band of Rs 44–52, the issue raised about Rs 2,900 crore.

Investor demand was exceptional: the IPO was subscribed 64.23 times overall, with the qualified-institutional portion covered 74.51 times and retail 3.23 times, and it was fully subscribed on the first day. Analysts called the stock a quasi-bond given the company's guaranteed expansion pipeline.

The proceeds funded transmission projects, and the company returned to markets with follow-on offers in 2010 and 2013. By FY2014 Power Grid reported revenue of Rs 15,721 crore and net profit of Rs 4,497 crore, and described itself as one of the largest transmission companies in the world, wheeling about 50% of India's power.

PGCIL's 2007 IPO raised about Rs 2,900 crore, subscribed 64 times; by FY2014 it was one of the world's largest grid operators, wheeling about 50% of India's power.

The expansion plan gave investors a visible pipeline of transmission projects.

A low float and government backing made the stock a quasi-bond for institutions.

Fresh capital plus divestment funded capacity without burdening the budget.

Retained state control kept the monopoly stable while adding market discipline.

Listing a monopoly infrastructure SOE can fund expansion and impose disclosure discipline without surrendering state control — 86.36% stayed with the government.

Power Grid Corporation became one of India's largest listed companies by market capitalisation and a regular dividend payer, while the state kept majority ownership. The 2007 IPO was widely seen as proof that India could sell minority stakes in strategic infrastructure without privatising control, and it opened the door to later public-sector offerings.