Power Finance Follow On Offer Opens For Subscription

The government’s first divestment of FY12, the follow-on-public offer of Power Finance Corporation has opened for subscription today.

The price band has fixed between Rs 193-203 per share. The government will divest 5% stake on the company which will raise 15% fresh equity via the issue.

The government holds about 89% stake in PFC, after divesting 10% through an initial public offering in March 2007.

For this fiscal, the government has set a target of mopping up Rs 40,000 crore through Dis-Investment in public sector entities. In 2010-11, amount raised through dis-investments stood at more than Rs 22,700 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 for the proposed FPO.