Sunday, January 16, 2011

PFC FPO: Power Finance FPO Likely Early Next Fiscal

State-owned Power Finance Corporation is likely to come out with its follow-on public offering early next fiscal, Government officials said.

The Centre intends to disinvest 5% stake in Power Finance, while the company would issue fresh shares to the tune of 15%.

The company has already invited applications to appoint up to four lead managers to advise it on the timing and other aspects of the proposed issue.

Power Finance Corporation, which is engaged in funding power generation, transmission and distribution projects, plans to use the funds from the issue to finance existing loans and future lending activities.

The Government holds 89.78% stake in the firm. It had divested a 10% stake through an initial public offering in 2007.