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Power Finance Corporation is set to raise up to Rs 4,700 crore through its follow-on public offer at Rs 193-Rs 203 a share.
The price is at a discount to PFC's closing price of Rs 211 a share on Monday, when it lost 1.65 per cent.
The follow-on public offer of PFC — the first public sector company's offer this fiscal — will open on Tuesday and close on Thursday for QIBs and on Friday for retail investors. A discount of 5 per cent is to be offered to retail bidders and to eligible employees, said a company press release.
The company, which is into financing of power sector projects, had launched its IPO in 2007.
The capital adequacy of the company will rise to 19 per cent from 15.94 per cent after the FPO, said Mr Satnam Singh, Chairman and Managing Director, Power Finance Corporation, at a news conference on Monday.
The net proceeds of the issue will be used for capital requirements and general corporate purposes.
The four public sector outfits whose FPOs have been given approval by the Cabinet are PFC, SAIL, ONGC and Hindustan Copper. “We are confident that half of the disinvestment target for FY-12 as set in the Budget will be achieved through these four FPOs approved by the Cabinet,” said Mr Sumit Bose, Disinvestment Secretary.
The Cabinet was considering other FPOs, he said but refused to give details.
The SAIL FPO has been scheduled for the second week of June and the ONGC FPO for the first week of July. The schedule for the Hindustan Copper FPO will be announced later.
The public sector initial public offerings being considered for this fiscal include National Buildings Construction Corporation and Rashtriya Ispat Nigam Ltd.
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