The board of Power Finance Corporation (PFC) has approved the Draft Red Herring Prospectus for its proposed follow on public offer.
On the basis of current market price, the share sale would garner more than Rs 5,300 crore. Shares of the company today closed at Rs 233.95 on the Bombay Stock Exchange (BSE).
A meeting of the company's board of directors today approved the DRHP for the proposed offering, according to a regulatory filing.
The sale would comprise a fresh issue of 17,21,65,005 equity shares by the company and an offer for sale of 5,73,88,335 equity shares by the government.
The FPO is likely to hit the market in May.
Last month, the Cabinet Committee on Economic Affairs gave the green signal for the company's FPO.
The government currently holds a 89.78% stake in the firm and had divested a 10% stake through an initial public offer (IPO) in 2007.
