Power Grid FPO Review

Power Grid Corporation of India has come out with a further public offer (FPO) of 78.71 crore equity shares of Rs.10 each, comprising of fresh issue of 60.19 crore shares and an offer for sale of 18.52 crore shares by Government of India (GoI), in the price band of Rs. 85 to Rs. 90 per share. Retail investors and employees are offered a 5% discount on the discovered price.

Details of the issue:

Issue Open: Dec 03, 2013 - Dec 06, 2013
Issue Size: 787,053,309 Equity Shares of Rs. 10
Issue Size: Rs. 6,689.95 - 7,083.48 Crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 85 - Rs. 90 Per Equity Share
Market Lot: 150 Shares.

Power Grid owns and operates more than 90% of India’s inter-state and inter regional electric power transmission system and the company reported revenue of Rs. 7,559 crore and PAT of Rs. 2,280 crore for H1FY14, resulting in EPS of Rs. 4.91 on an equity of Rs. 4,630 crore. The company had earlier came out with a similar FPO in 2010 at a price of Rs.90 and the returns from that FPO were mediocre. Similarly, the current FPO is done mainly to meet the disinvestment targets and there is not much for investors or even traders to flip, unless the issue is priced at Rs.85. Considering fundamentals and the past performances of the issue, investors can skip this issue.

Historical Sensex Returns Updated - 2024

Historically Sensex has given returns of about 15% per year, despite volatility and price fluctuations of about -20% to +60%. The following table shows S&P BSE Sensex historical data - start & close values and the yearly returns of the sensex from 2000 to 2024. So far during the year the index has hit an all-time high of 75,124 and despite markets hitting all time highs not all stocks make all-time highs. There are many stocks still below their highs. Stocks like HDFC Bank, ITC, Asian paints are still well below their highs and some of them have given low returns over last 3-5 years. Individual or Retail investors can achieve consistent returns through investing via mutual funds , whether it be active or passive. Chasing returns from individual stocks is futile. Be a wise investor !

Walmart and Costco Selling Gold and Silver

Costco Wholesale and Walmart are both starting to sell gold bars. First, Costco sold gold bars to its members looking to invest in more than bulk household purchases. Now the warehouse retailer is selling silver coins too. Walmart has also started selling precious metals such as gold and silver in its online store, following in the footsteps of Costco Wholesale. Against the backdrop of high inflation, gold has become the new favorite of American consumers. The value of gold and silver is expected to continue to climb in 2024 on expectations that the Federal Reserve will start cutting interest rates. Gold currently trades at $2255. Will Indian supermarkets sell gold? Gold has been always been one of the favorite investments for Indians, as evident from the fact that Indian households hold over 21,000 tonnes of gold. Indians prefer to buy gold jewelry and this trend could change if Gold is sold in supermarkets. There are Gold ETFs and Sovereign Gold Bonds (SGB) as well. Addi...

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