State-owned Power Finance Corporation Limited (PFC) is entering into primary market with Rs 4,659.93 crore follow-on public offering (FPO). The company will issue 229,553,340 of Rs 10 each. The FPO is opening on 10th May 2011 and the shares will be available for subscription up to 13th May 2011. The premium of the issue will be decided through a 100% Book Building Process. The price band for the issue has not been fixed yet. State run Navratna PSU Power Finance Corporation Limited (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 that IPO and now its stake in the company is 89.78%. Now The government proposed for a 15% fresh equity and 5% disinvestment of government stake in the company.
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 in FY-12 will kickstart its disinvestment programme with Power Finance Corp’s (PFC) public issue.
The equity shares offered through the IPO are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
IPO Open : 10th May 2011 – 13th May 2011
IPO Type : 100% Book Built Issue IPO
IPO Size : 229,553,340 Equity Shares of Rs 10 each
IPO Size : Rs 4,430.38 – Rs 4,659.93 Crore
Face Value : Rs 10 Per Equity Share
IPO Price Band : Rs 193 – Rs. 203 Per Equity Share
Minimum Bid Quantity : 28 Shares (Rs 5684 with 1 Lot) @ upper level of price band
Maximum Bid Quantity : 980 Shares (Rs 198940 with 35 Lots ) @ upper level of price band
Listing At : BSE, NSE
The Government of India is offering 5% discount to retail investors and eligible employees in this PFC FPO.
The Book Running Lead Managers (BRLM) to the offer are DSP Merrill Lynch Limited, Goldman Sachs (India) Securities Private Limited, ICICI Securities Limited and JM Financial Consultants Private Limited.
Registrar of the Issue : Karvy Computershare Private Limited, Hyderabad.
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