Mumbai: State-run Power Finance Corporation on 23 February 2007 made a dream debut on the Bombay Stock Exchange with its shares being listed at Rs 104 with 22.35% premium over its issue price of Rs 85 per share.
The company, which early this month raised nearly Rs1,000 crore from its initial public offer, entered the bourses on Friday with around 114.77 crore equity shares of Rs10 each.
The company’s Chairman V K Garg rang the bell on the stock exchanges, signalling start of trading in the scrip and within minutes of listing the PFC scrip touched highs of Rs 117 as the counter witnessed heavy volumes of 38.39 lakh shares.
On the National Stock Exchange, PFC shares jacked up highs of Rs 119.40, after they listed on Rs 113 with 33 per cent premium as 1.81 crore shares were traded on the NSE.
PFC is the second power sector PSU to be listed on the bourses after NTPC Ltd in 2004, which was trading at Rs 143.25 per share, up a marginal 0.17 per cent on the BSE.
During its highly successful IPO, PFC garnered Rs 997.19 crore as the issue was oversubscribed 77.26 times, clocking a demand of over Rs 77,000 crore. The PSU had come up with an 11.73 crore-share IPO to augment its capital base to meet future capital requirements so as to exploit the growth opportunities available in Indian power sector.
Post-issue, the government’s stake in the company fell by 10.22% from 100% owned by it earlier.
PFC is a public financial institution and a non-banking financial company providing fund and non-fund based support for the development of the Indian power sector. Its earnings for the half year ended September 2006 was Rs 401.30 crore and Rs 975.41 crore for 2005-06.