Companies

Power Finance Corp to file DRHP for FPO

PTI New Delhi | Updated on March 16, 2011

pfc

The government is all set to begin its disinvestment programme for the next fiscal with Power Finance Corporation (PFC), which may file its regulatory papers with market regulator SEBI for the 20 per cent follow-on public offer (FPO) later this week.

“PFC could be the first issue for the next fiscal. It would file its Draft Red Herring Prospectus (DRHP) later this week,” an official with the finance ministry said.

The public issue is likely to hit the market sometime in May.

The company has already shortlisted the merchant bankers for the FPO. Goldman Sachs, JM Financial, DSP Merill Lynch and ICICI Securities are likely to manage the around Rs 6,000 crore FPO of the state run lending agency.

Last month, the Cabinet Committee on Economic Affairs gave nod to the company to hit the market. The company will infuse 15 per cent fresh equity, while the government will dilute its 5 per cent stake.

The government currently holds 89.78 per cent stake in the firm. It had divested a 10 per cent stake through an initial public offer (IPO) in 2007.

Besides PFC, the government also plans to disinvest in SAIL in the first quarter of next fiscal.

Published on March 16, 2011

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