PFC to file Red Herring Prospectus on May 15

New Delhi, May 04: The country's prime lending institution for the power sector, Power Finance Corpration (PFC) today said that it would file its Red Herring Draft Propsectus (RHDP) on May 15, clearing the way for its oncoming Initial Public Offering (IPO) to raise Rs 1,500 crores from the market.

The RHDP will be file in the SEBI, PFC sources told UNI.

Ten per cent of PFC and five per cent of the government will be disinvested when the IPO hits the market by June end this year.

The IPO in the price band of Rs 65-Rs 70 would raise up to Rs 1,500 crore.

''The Government will ride piggyback on the PFC IPO to disinvest five per cent stake. The Cabinet has approved the proposal,'' the Power Secretary, R V Shahi had said.

PFC, will only be the second public-sector power firm to get listed on the bourses after NTPC Ltd.

The Government had divested 5.25 per cent stake in power giant NTPC during its public offer of an equal amount in 2004. NTPC had raised nearly Rs 5,400 crore, of which Government had mopped up its share of about Rs 2,700 crore.

UNI