Mumbai: The initial public offer (IPO) of Powergrid Corporation of India Ltd, the country''s biggest transmission utility, was subscribed over 21 times by noon on its last day of issue.

PGCIL entered the capital market with an IPO of 573,932,895 equity shares of Rs10 each for cash at a price band of between Rs44 and Rs52 a share. The issue received bids for 12,401.4 million equity shares against the 573.9 million shares on offer, data available with the stock exchanges show.

The company would raise up to Rs3,000 crore through its issue. The IPO received robust response in the qualified institutional buyers'' category especially from the foreign institutional investors (FIIs).

PGCIL is India''s largest power transmission company and in charge of developing the crucial national grid comprising of 37,150 MW transmission capacity by 2012 from the existing 14,100 MW.

PGCIL transmitted around 45 per cent of the total power generated in the country in FY2007 with ownership of electrical transmission lines covering 61,875 circuit km and 106 substations.

The proceeds of the issue would be used to part finance 15 projects involving a total investment of Rs12,280 crore. The completion of the 15 projects would enhance PGCIL''s transmission system by 13,022 circuit km.

PGCIL is the third central power utility to tap the capital market for raising funds after NTPC Ltd in 2004 and Power Finance Corporation early this year.

Like NTPC and PFC, the government will piggyback on PGCIL IPO to divest five per cent of its stake. While NTPC had raised around Rs5,400 crore, PFC had mopped up nearly Rs1,000 crore.

PGCIL has, meanwhile, diversified into areas like consultancy and telecommunication, which are also growing sectors and added sources of revenue.

PGCIL commenced its operations in 1992 as part of an initiative of the government to consolidate all the interstate and inter-regional electric power transmission assets of the country in a single entity. Accordingly, the transmission assets of all central sector electricity generation utilities that operated on an interstate or inter-regional basis were transferred to PGCIL.

The company has been designated a `mini-ratna'' category-I public sector undertaking since October 1998, which provides a greater delegation of powers to undertake new projects without government approval, subject to an investment ceiling set by the government.

PGCIL has since completed 101 transmission projects, valued in the aggregate at approximately Rs25,181 crore. As of 30 June 2007, the company had 45 transmission projects in various stages of implementation.