New Delhi: State-run lender Power Finance Corp’s 20% follow-on public offer (FPO) which is expected to garner close to Rs7,000 crore is likely to open around 15 May.
“If everything is done in time i.e. selection of bankers, cabinet approval, filing of DRHP (Draft Red Herring Prospectus) then RHP... the FPO can be expected around 15 May,” a power ministry official told the news agency.
“As per current valuations PFC FPO may raise close to Rs7,000 crore,” he said. The market capitalisation of the company stands at Rs34,203 crore.
The power ministry, the parent ministry of PFC had sent a proposal for a 15% fresh equity and 5% disinvestment of government stake in the company in November, last year.
The government currently holds 89.78% stake in the firm. It had divested a 10% stake through an initial public offer in 2007.
PFC is engaged in funding power generation, transmission and distribution projects and 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 Rs40,000 crore through its disinvestment programme this fiscal, has already mopped up close to Rs20,000 crore through stake sales in PSUs Satluj Jal Vidyut Nigam, Engineers India Ltd, Coal India Ltd and PowerGrid Corporation.
Shares of PFC closed at Rs298, down 1.06% on the Bombay Stock Exchange.