PFC to tap equity markets by end-Mar '07

Power Finance Corporation (PFC) may float an initial public offering (IPO) of shares by end-March 2007, VK Garg, chairman of PFC, said here today.

"Cabinet approval has been obtained. As soon as Sebi gives permission, we will come out with an IPO, hopefully by end of this fiscal," he said.

The book value of the shares will be Rs 62 and the premium will be decided by the market.

Last month, finance minister P Chidambaram had said the cabinet has cleared proposals to divest government stake in three power firms through IPOs.

Up to 10% of PFC, 24% of Power Grid Corporation, and 20% in the Rural Electrification Corporation would be up for grabs in the Jan-March 2007 period, Chidambaram said, marking a limited revival of stalled asset sales. Proceeds from the offers would be used for expansion.