Plan panel nod to govt for divesting 10% PFC stake

Planning Commission has given its nod to state-owned Power Finance Corporation (PFC) to raise capital through a public offering in which the government is also likely to offload up to 10% stake in the current fiscal.

The ministry of power will take the proposal to the cabinet in the next 10-15 days.

PFC had sought government's permission to float up to 10% equity of the total paid-up capital of Rs 1,030 crore.

The finance ministry is also understood to have cleared PFC's IPO along with the disinvestment of government's stake of similar quantum, officials involved in the process said.

The corporation expects to garner over Rs 1,000 crore by floating 10% shares - translating into a premium of over Rs 100 per share.

Clubbing both IPO and disinvestment, PFC would mop-up over Rs 2,000 crore out of which 50% would go to the government as disinvestment proceeds while PFC would utilise the remaining funds for expansion.

Shyam Wadhera, director ((projects) of PFC, said: "The process to go for a public offering is on, and we hope to get all clearances soon."

The IPO could hit the markets by June, he added, but refused to divulge any further details.