Put following code in OnRow databound event handler of gridview
protected void OnRowDataBound(object sender, GridViewRowEventArgs e)
{
if (e.Row.RowType == DataControlRowType.DataRow)
{
e.Row.Cells[0].Text = Regex.Replace(e.Row.Cells[0].Text, txtSearch.Text.Trim(), delegate(Match match)
{
return string.Format("<span style = 'background-color:#D9EDF7'>{0}</span>", match.Value);
}, RegexOptions.IgnoreCase);
}
}