Business Daily from THE HINDU group of publications
Friday, Jan 19, 2007
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Business Daily from THE HINDU group of publications Friday, Jan 19, 2007 ePaper |
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Markets
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IPOs Money & Banking - Financial Institutions Industry & Economy - Power Our Bureau
EYEING NEW ROUTE: Mr R.V. Shahi (left), Secretary, Ministry of Power, with Dr V.K. Garg (centre), CMD, Power Finance Corporation and Mr Satnam Singh, Director-Finance, PFC, at a press conference to announce the company's IPO in Mumbai on Thursday. - Paul Noronha
Mumbai , Jan. 18
The Power Finance Corporation (PFC) has fixed a price band of Rs 73 to Rs 85 for its proposed initial public offering. The company is offering 11.73 crore equity shares of Rs 10 each to the public, through a 100 per cent book building process. The issue constitutes 10.22 per cent of the fully diluted post-issue capital of the company. The issue opens for subscription on January 31 and closes on February 6. The objects of the issue are to augment the company's capital base to meet the future fund requirements. PFC, the nodal agency for the development of ultra mega power projects, and upcoming transmission and merchant power plants projects is expecting that the proposed IPO would fetch the company about Rs 1,000 crore. The Union Power Secretary, Mr R.V. Shahi, talking to the media on the occasion of pre-IPO press meet said during the 10th Five Year plan, PFC has funded 23 per cent of all the power projects in the county. In 11th Plan the percentage would be significantly higher. The Union Government was considering of conferring a Navaratna status to the company but the final decision is yet to be taken, he said. The IPOs are not only meant for fund raising, but also to bring good corporate governance and strengthen managerial skill in these companies, he said. Dr V.K. Garg, Chairman and Managing Director, PFC, said that the company was currently lending only five per cent of its total loan portfolio to non-conventional energy projects. But given the substantial price hike in the hydrocarbon fuels, lending to non-conventional energy sector will only increase in the coming years, he said.
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