The PSU had already initiated discussions with the power ministry for its approval on issuing shares to foreign investors through the private placement route, sources said. |
This was likely to take place after the IPO, although there had been no decision as yet on the timeframe or the amount of equity to be offered, sources said. |
PFC, a non-banking financial company for funding power sector projects, is planning to issue private equity in the US under rule 144 A of Securities Exchange Commission, the US capital market regulator. |
The company is also mulling private placement to overseas investors outside the US market under "Regulation S" (Reg S) guidelines of the Securities Exchange Commission. |
The Reg S governs offers and sales made outside the US and allows raising capital in other countries without going through the US securities registration process. |
Meanwhile, the PFC has firmed up a tentative timeline for its IPO of 10 per cent fresh equity to raise up to Rs 1,030 crore. Along with the offer, the government will also divest 5 per cent stake in the the company. |
The PSU plans to file a draft red herring prospectus with Sebi in mid-March. Depending on the approval of the market regulator, the final red herring prospectus would be filed by the end of april 2006. |
The company would begin roadshows and launch the IPO in June and finalise the allotment of shares by the end of the same month. |
The combined issue of shares in the offering would be 15.45 crore. The issue is expected to raise a total of Rs 1,500 crore. Of this, Rs 500 crore will go to the government as its share of the proceeds. |
Post-IPO, the government's equity in the company will come down to 86.36 per cent from the present 100 per cent. |
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