Power Fin follow-on offer opens on May 10

| | Updated on: May 02, 2011

Power Finance Corporation Ltd's further-on public offer of 22.95 crore shares would be open for subscription from May 10 to May 13. For the qualified institutional buyers (QIBs), the offer would close on May 12.

The company filed the red herring prospectus on April 25.

The offering is a combination of a fresh issue comprising 17.21 croreshares and an offer for sale of 5.74 crore shares.

A maximum of 2,75,464 shares have been earmarked for employees. The issue constitutes 17.39 per cent of the post issue paid-up capital of the company.

BofA Merrill Lynch, Goldman Sachs, J M Financial and ICICI Securities are the book running lead managers and Karvy is the registrar to the issue.

The company proposes to deploy the net proceeds from the fresh issue to meet capital adequacy norms and fund future business growth.

The PFC stock closed marginally up at Rs 231.70 on the BSE. Among the major shareholders, LIC owns 1.17 crore shares or 1.02 per cent stake of PFC. The government holds about 89 per cent stake in PFC, after divesting 10 per cent through an initial public offering in March 2007.

In 2010-11, the Government raised about Rs 23,000 crore through disinvestments.

Published on May 02, 2011

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