Financial Daily from THE HINDU group of publications
Thursday, Apr 03, 2003
Financial Daily from THE HINDU group of publications Thursday, Apr 03, 2003 |
|
|
|
|
|
Industry & Economy
-
Power Markets - IPOs Power Finance Corpn IPO plan awaits Finance Ministry nod Our Bureau
Mr A.A. Khan, CMD, Power Finance Corporation, with Mr R. Krishnamoorthy, Director, Finance, at a press conference in New Delhi on Wednesday.
NEW DELHI, April 2 POWER Finance Corporation (PFC), the wholly Government-owned Development Financial Institution (DFI), is expecting to enter the market with an Initial Public Offer (IPO) of around 10 per cent of its equity later this year. "We are awaiting the Ministry of Finance's nod. As far as the Ministry of Power is concerned, it has given the in-principle clearance for the public issue through an IPO," the PFC Chairman and Managing Director, Mr A.A. Khan, told newspersons here on Wednesday. PFC has proposed return of 60 per cent of Government equity at par to make the IPO attractive to the investor. If the Ministry of Finance agrees to PFC's proposal, the equity base will shrink from Rs 1,030 crore to Rs 412 crore. "This has been proposed to make the IPO attractive for fetching handsome premium on the issue," Mr Khan said. On the performance front, the company has recorded a net profit of Rs 1,067 crore during financial year 2002-03, up 37 per cent from the Rs 778 crore recorded during the previous year. The income has, meanwhile gone up by 24 per cent, from Rs 2,096 crore in fiscal 2001-02 to Rs 2,598 crore in fiscal 2002-03. The growth has taken place on the back of increased disbursements by the DFI. During fiscal 2002-03, the corporation disbursed loans to the tune of Rs 7,337.5 crore, up 42.5 per cent over the previous year's Rs 5,150 crore. "In the last fiscal, we revised our lending rates downward by five times and remained most competitive in the sector," Mr Khan said. The power sector-specific funding agency has appointed SBI Capital markets Ltd as advisor for creating a corpus of $5 billion for funding generation projects in the country. "Government has agreed to the proposal to set up the corpus - the India Power Fund. Hence, we have asked SBI Caps to work out the details," Mr A.A. Khan said. The idea to set up the corpus was conceptualised around two years ago. According to Mr Khan, the Power Ministry's plans to add one lakh MW by 2012 would entail an expenditure of Rs 8,00,000 crore.
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|