Power Finance Corporation FPO likely next fiscal : Solanki

Power Finance Corporation FPO likely next fiscal : Solanki

Mumbai: State-run Power Finance Corporation (PFC)’s follow-on public offer (FPO) is likely to hit the market next fiscal, union minister of state for power, Bharat Solanki said on Thursday.

“The necessary procedure for disinvestment in PFC is underway and we expect the FPO to come out some time in the next fiscal," Solanki told the news agency on the sidelines of an event here.

The power ministry has proposed a disinvestment of 5% of the Centre’s stake in the public sector finance institution, as well as the issue of 15% fresh equity, through the FPO route.

“The decision on the FPO will be taken, taking into consideration the market situation and its favour-ability. If the market situation is favourble, we can expect the FPO to come out anytime in the next fiscal," he added.

The Corporation, which is engaged in funding power generation, transmission and distribution projects across the country, plans to use the funds raised from the FPO to finance both existing loans, as well as future lending activities.

Presently, the Government holds a 89.78% stake in the firm. It had divested a 10% stake through an initial public offer in 2007.

The Government, which hopes to raise Rs40,000-crore through its disinvestment programme this fiscal, has already mopped-up over Rs20,000-crore through disinvestments in Coal India Limited, Satluj Jal Vidyut Nigam, Engineers India, Power Grid Corporation and MOIL.