PFC FPO issue price fixed at Rs203 a share

PFC FPO issue price fixed at Rs203 a share

New Delhi: The government on Monday fixed the issue price for the follow-on public offer (FPO) of state-run Power Finance Corporation (PFC) at Rs203 per share, which is expected to fetch close to Rs4,700 crore.

“Empowered group of ministers has approved the issue price for PFC’s FPO at the upper cap of the price band i.e. Rs203 per share with a discount of five percent to the retail investors and eligible employees," the company said in a filing to the Bombay Stock Exchange.

The price band for the FPO was fixed at Rs193-203 per share.

The government is disinvesting 5% of its stake in the public sector company, while the company is raising 15% fresh equity. The government holds about 89% stake in PFC, after divesting 10% through an initial public offering (IPO) in March 2007.

For this fiscal, the government has set a target of mopping up Rs40,000 crore through disinvestment in public sector entities. In FY11, amount raised through disinvestments stood at more than Rs22,700 crore.

Last year, PFC was given infrastructure finance company status - a move that enabled the entity to mop up funds through issue of tax-free infrastructure bonds.

In April, the board of directors of PFC had approved the red herring prospectus (RHP) for the proposed FPO.

BofA Merrill Lynch, Goldman Sachs, ICICI Securities and JM Financial are among the book running lead managers for the offer.

Shares of PFC on Monday closed at Rs216.5 on the BSE, up 0.3% from the previous close.