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PFC files draft prospectus with Sebi for FPO

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 8:04 PM IST

State-run Power Finance Corporation (PFC) today filed draft papers with the market regulator Sebi estimated to raise about Rs 6,000 crore.

The company would be coming out with an offer for sale of 22.95 crore equity shares of face value of Rs 10 each, investment banking sources said.

This would include fresh issue of over 17.21 crore equity shares and an offer for sale of about 5.74 crore equity shares by the government, sources said.

With this PFC would be the first PSU to hit the capital market in the next fiscal (2011-12).

The estimated Rs 6,000 crore public issue of the state-run lending agency is likely to hit the market sometime in May.

The government currently holds a 89.78% stake in the firm. It had divested a 10% stake through an initial public offer (IPO) in 2007.

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Last month the Cabinet Committee on Economic Affairs gave its nod to the company to hit the market. The company will infuse 15% fresh equity, while the government will dilute its 5% stake.

The company has already shortlisted the merchant bankers for the FPO. Goldman Sachs, JM Financial, DSP Merill Lynch and ICICI Securities are likely to manage the FPO.

Finance Minister Pranab Mukherjee in his Budget speech for 2011-12 had proposed to raise Rs 40,000 crore through disinvestment in 2011-12 fiscal.

Besides, disinvestment receipts have been projected at Rs 30,000 crore and Rs 25,000 crore in 2012-13 and 2013-14, respectively.

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First Published: Mar 18 2011 | 8:01 PM IST

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