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PFC to divest up to 20% stake via public issue

PFC to divest up to 20% stake via public issue
PTI
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First Published: Fri, Aug 27 2010. 02 51 PM IST
Updated: Fri, Aug 27 2010. 02 51 PM IST
New Delhi: State-run Power Finance Corp (PFC) has proposed disinvestment in the company by way of up to 20% public issue, the Parliament was informed on Friday.
“The board of Power Finance Corp has approved a proposal for a fresh issue of equity shares along with disinvestment, not exceeding in aggregate 20% of existing paid up share capital of the company, subject to approvals ” minister of state for power Bharatsinh Solanki told the Lok Sabha.
The company is likely to raise fresh equity to the tune of 10% and the government may disinvest 10% of its 89.78% stake in the public sector company.
Going by the current market capitalization of the company, which stands at about Rs38,909 crore, PFC may raise over Rs7,700 crore.
The government had divested 10% stake by way of an initial public offer (IPO) in 2007. After the proposed disinvestments it may go down to about 80%.
PFC is a non-banking financial institution that provides loans for various power projects in generation, transmission, distribution sector as well as for renovation & modernization (R&M) of existing power projects.
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First Published: Fri, Aug 27 2010. 02 51 PM IST