Power Finance Corporation FPO : Likely by April or May 2011

by khalid on 02/02/2011 · 0 comments

State-owned Power Finance Corporation Limited is planning to come up with its Rs 7,000 crore follow-on public offering (FPO) by sometime in April or May 2011. Government says PFC FPO looks difficult this fiscal. Indus The government proposed for a 15% fresh equity and 5% disinvestment of government stake in the company. Power Finance Corporation (PFC) is an Indian financial institution. It is the financial back bone of Indian Power Sector. The company issued an IPO in January, 2007. The issue was oversubscribed by over 76 times. Government divested 10% through this IPO and now its stake in the company is 89.78%.

PFC plans to use the funds from the FPO to finance both existing loans, as well as future lending activities.

The government, which hopes to raise Rs 40,000 crore through its disinvestment programme this fiscal, has already mopped up close to Rs 20,000 crore through stake sales in PSUs Satluj Jal Vidyut Nigam, Engineers India Ltd , Coal India Ltd and PowerGrid Corporation.

Stay tuned to BelltheBull Blog for more news on Power Finance Corporation FPO !

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