Govt OKs follow-on share sale by Power Fin Corp

Govt OKs follow-on share sale by Power Fin Corp

New Delhi: India on Thursday approved a follow-on share sale by state-run Power Finance Corp that could be worth $1.3 billion at current market prices. The lender which funds energy projects will issue fresh shares for 15% of the pre-issue capital and the government will sell 5%, the government said in a statement.

At 2:33 p.m. local time, shares in Power Finance Corp, valued at about $6.5 billion, were trading down 1.45% at 252.25 in the Bombay Stock Exchange.

Chairman Satnam Singh had said in January 2011 the share sale was likely to be launched by April-May.

A maximum of 0.12% of the issue will be reserved for the employees and they along with retail investors will get a discount of 5% to the offer price, the government said.

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